I - Balance of payments - January 2015
The balance of payments posted a surplus US$562 million in January. The current account turned in a deficit of US$10.7 billion, accumulating a deficit of US$90.4 billion over twelve months, which corresponds to 4.17% of GDP. The financial account registered net inflows of US$10.8 billion, highlighting foreign portfolio investments, US$9.7 billion, and foreign direct investments, US$4 billion.
The service account posted a deficit of US$3.6 billion in the month, 8.3% up from January 2014. Net expenditures on transportation added up to US$670 million, a 9.6% decrease in the same comparison base. International travel posted net expenditures of US$1.7 billion, up 11.9% from January 2014. This result was influenced by the 4.1% rise in Brazilian tourists' expenditures abroad and the 13.8% reduction in foreign travelers' expenditures in Brazil. It should be highlighted increases in net expenditures on computer and information, 27.5%, and royalties and license fees, 1.6%, as opposed to the 9% drop in net expenditures on equipment rentals.
Net remittances of income abroad totaled US$4 billion in the month, a 9.4% falloff when compared to January 2014. Net expenditures on profits and dividends added up to US$1.7 billion, as compared to US$2.5 billion in the same month of the previous year, whereas net expenditures on interests reached US$2.3 billion, a 20.4% rise in the same comparison period. Net outflows of income on direct investments totaled US$1.6 billion, 31.1% lower than in January 2014. Net remittances of income on portfolio investments added up to US$2 billion, as a result of net expenditures on profits and dividends, US$324 million, and interests on fixed-income securities, US$1.7 billion. Net expenditures on income on other investments amounted to US$405 million, a 23.4% reduction from January 2014.
Unilateral transfers registered net inflows of US$98 million, a decline of 51% against January 2014. Gross inflows for the maintenance of residents added up to US$136 million, a drop of 15.5% in the same comparison period.
Brazilian direct investments abroad turned in net inflows of US$5.3 billion, comprising net investments of US$7.2 billion in the acquisition of equity capital participation in companies abroad, whereas net inflows of intercompany loans from affiliated companies abroad to their Brazilian headquarters totaled US$1.9 billion.
In January, net inflows of foreign direct investments (FDI) totaled US$4 billion. Net inflows of equity capital participation in Brazilian companies reached US$2.4 billion, whereas net disbursements of intercompany loans totaled US$1.6 billion. Over twelve months, net FDI inflows amounted to US$61.3 billion, corresponding to 2.83% of GDP.
Foreign portfolio investments registered net inflows of US$9.7 billion in January, comprising net inflows of US$1.7 billion in stocks and US$8 billion in fixed-income securities. Net inflows of fixed-income securities negotiated in the country reached US$8.2 billion. Net amortizations of public securities negotiated abroad, including repurchases on the secondary market, added up to US$203 million. Net amortizations of notes and commercial papers reached US$130 million in the month. Operations with short-term fixed-income securities negotiated abroad totaled net inflows of US$46 million.
Other Brazilian investments abroad posted net returns of US$146 million, comprising, among others, a US$1.3 billion reduction in the balance of deposits held by Brazilian banks abroad, and a rise of US$1.4 billion in deposits held by nonfinancial companies. Net inflows of short-term trade credits and loans granted abroad added up to US$71 million in the month.
Other foreign investments in Brazil posted net inflows of US$1.7 billion. Trade suppliers' credits totaled net disbursements of US$1.1 billion, focused on short-term transactions. Medium and long-term loans totaled net inflows of US$661 million, influenced by net disbursements of direct loans, US$927 million.
II - International reserves
International reserves in the liquidity concept totaled US$327.2 billion in January 2015, a US$1.9 billion reduction as compared to the previous month. In the month, the stock of repo lines reached US$10.4 billion, a drop of US$100 million against December 2014. Earnings on reserves added up to US$225 million. Price variations raised the stock by US$2.1 billion, while parity variations led to a reduction of US$4.4 billion. In the cash concept, the stock of reserves reached US$361.8 billion in January, a US$1.8 billion reduction against the previous month.
III - External debt
The estimated gross external debt for January remained stable as compared to the amount estimated for December 2014, adding up to US$348.7 billion. The long-term estimated external debt reached US$292.6 billion, a US$369 million reduction, whereas the short-term indebtedness totaled US$54.1 billion, a US$385 million increase in the same comparison period.
Among the factors underlying long-term external debt variation in the period, it should be highlighted loans taken by the nonfinancial sector, US$645 million, and the reduction associated with parity variations, US$1 billion. The variation of the short-term external debt in the period is mainly due to short-term loans taken by the nonfinancial sector, US$398 million.