Economic Information

PRESS RELEASE - January 26, 2016

Foreign Sector
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I - Balance of payments - December 2015

The current account turned in a deficit of US$2.5 billion in December, accumulating a negative balance of US$58.9 billion over the last twelve months, equivalent to 3.32% of GDP, compared with a deficit of US$104.2 billion in 2014 (4.31% of GDP). As for the financial account, net inflows exceeded net outflows by US$2.6 billion, highlighting net inflows of US$15.2 billion under the modality of foreign direct investments (FDI) into Brazil. The financial account accumulated net inflows of US$56.7 billion over the year, highlighting once again net FDI inflows, US$75.1 billion.

The service account registered a deficit of US$2.5 billion in the month, compared with a deficit of US$4.8 billion in December of the previous year. In 2015, net expenditures on services totaled US$37 billion, representing a reduction of 23.1% compared with 2014. Net expenditures on equipment rentals reached US$2.1 billion in the month and US$21.5 billion in the year, for respective decreases of 23.2% and 4.8% when compared to 2014. The international travel account posted a deficit of US$653 million in the month, which was influenced by the 42.3% decline in Brazilian tourists' expenditures abroad, and the 9.9% increase in expenditures by foreigners in Brazil, both compared to December 2014. In the year, net expenditures on international travel fell by 38.5% to US$11.5 billion when compared to the previous year, registering respective revenues and expenditures of US$5.8 billion and US$17.4 billion. Net expenditures on transportation totaled US$262 million in December, accumulating a deficit of US$5.7 billion in the year, compared with a deficit of US$8.7 billion in 2014, representing a reduction of 34.2%. Net expenditures on intellectual property services totaled US$416 million in the month and US$4.7 billion in the year, which is 15.8% below the 2014 result. Net expenditures on telecommunications, computing and information reached US$67 million in December and US$1.8 billion in the year, showing a reduction of 20.5% compared to the previous year.

Primary income net expenditures totaled US$6.5 billion in the month, dropping 10.1% compared to that observed in December 2014 and accumulating US$42.4 billion in 2015, representing a decrease of 18.8% compared with the previous year. In December, net outflows related to income on direct investments totaled US$4.2 billion, showing a reduction of 24.1% compared with December, 2014. Net expenditures regarding income on portfolio investments totaled US$1.9 billion, comprising net expenditures on profits and dividends, US$469 million, and interests on securities negotiated on the foreign market, US$1.4 billion. Net expenditures regarding income on other investments reached US$697 million, 10.5% higher than the figure registered in December of the previous year, whereas income related to earnings on reserves totaled US$230 million. In December, net outflows of profits and dividends reached US$4 billion, as compared to US$5.2 billion during the same period in 2014. Net expenditures on interests totaled US$2.5 billion, 26.8% above the result from December of the previous year. In the year, net interest payments reached US$21.9 billion, registering stability when compared with the US$21.3 billion from the previous year, while total net expenditures on profits and dividends reached US$20.8 billion, showing a 33.3% reduction compared to 2014.

In the month, the secondary income account posted net inflows of US$459 million. Gross revenues related to personal transfers reached US$216 million in the month, showing a 2.2% decrease compared to December, 2014. In the year, net inflows of secondary income totaled US$2.7 billion, similar to that observed in 2014. Gross revenues related to personal transfers reached US$2.5 billion in 2015, 15.6% above the result from the previous year.

In December, direct net investments abroad totaled US$2.7 billion, accumulating US$13.5 billion in 2015, representing a reduction of 48.2% compared to that observed in 2014. Net direct investments abroad in 2015 comprised US$14.3 billion in net acquisitions from equity capital abroad, including US$4.5 billion from reinvestments of earnings abroad, and US$839 million in net income from intercompany loans.

In December, direct investments into Brazil registered net inflows of US$15.2 billion. In the year, net inflows of FDI into Brazil reached US$75.1 billion, representing a reduction of US$21.8 billion, which is equivalent to 22.5% compared to the 2014 result. Net inflows of investments into Brazil reached US$56.4 billion, including US$7.1 billion of reinvested earnings. The total result was US$1.5 billion below the net FDI inflows in 2014. Intercompany loans corresponded to net inflows of US$18.7 billion in 2015, as compared with US$39 billion in 2014, for a reduction of US$20.3 billion.

Portfolio investment - liabilities posted net outflows of US$4.4 billion in the month, accumulating net inflows of US$18.5 billion in the year, compared with US$41.5 billion in 2014. In 2015, there were inflows of US$10 billion in stocks and investment funds, and US$8.5 billion in fixed-income securities. Investments in fixed-income securities negotiated in Brazil posted net outflows of US$1.2 billion in the month and net inflows of US$16.3 billion in the year. Long-term fixed-income securities negotiated abroad, excluding sovereign bonds, totaled net amortizations of US$1.8 billion in December and US$4.7 billion in the year. The rollover rate for long-term securities, excluding sovereign bonds, totaled 12% in December and 69% in 2015. Net amortizations related to Republic bonds accumulated US$3.4 billion in 2015.

Other investment - assets increased by US$6.5 billion in December and by US$46.2 billion in the year, including net concessions of trade credits and advances, US$28.4 billion; and deposits held abroad, of which US$4.6 billion referring to banks and US$13.6 billion to other sectors.

Other investment - liabilities registered net inflows of US$263 million in December and US$25.7 billion in the year. Trade credits from suppliers registered net amortizations of US$568 million in the month and net disbursements of US$23.5 billion in the year, which were focused on short-term operations. Long-term loans showed net inflows of US$1.6 billion in December and US$4.6 billion in the year. The rollover rate of medium- and long-term direct loans totaled 127% in the month and 113% in 2015. Net amortizations of short-term loans reached US$816 million in the month and US2.3 billion in the year.


II - International reserves

International reserves according to the liquidity concept totaled US$368.7 billion in December, 2015, a reduction of US$237 million compared to the previous month. In December, the stock of repurchase lines reached US$12.3 billion, an increase of US$315 million compared to the November 2015 position. Income regarding earnings on reserves added up to US$230 million. Price variations reduced the debt stock by US$509 million. In the cash concept, the stock of reserves reached US$356.5 billion in December, a decrease of US$552 million compared to the previous month.


III - External debt

The gross external debt estimated for December totaled US$337.7 billion, a reduction of US$7.2 billion compared to the amount estimated for September 2015. The estimated long-term external debt reached US$281.6 billion, a reduction of US$4.9 billion, while the short-term debt totaled US$56.1 billion, a reduction of US$2.3 billion in the same period.

Among the factors underlying the long-term external debt variation over the period, it should be highlighted the amortization of debt securities held by financial and nonfinancial sectors, US$1 billion and US$746 million, respectively; amortization of loans by the financial and nonfinancial sectors, US$1.3 billion and US$604 million, respectively; in addition to the reduction consequent upon the exchange rate variation, US$279 million. The variation of the short-term external debt in the period is mainly explained by amortizations of loans by the financial and nonfinancial sectors, US$1.5 billion and US$995 million, respectively.