I - Balance of payments - August 2014
The balance of payments registered a surplus of US$2.4 billion in August. The current account posted a deficit of US$5.5 billion in the month, accumulating US$54.8 billion in the year, lower than in the same period in 2013 (US$57.6 billion). In the 12-month period up to August, the current account cumulative deficit totaled US$78.4 billion, equivalent to 3.47% of GDP. With regard to the financial account, it should be highlighted net inflows of foreign direct investments (FDI), US$6.8 billion, and foreign portfolio investments, US$5.4 billion.
The service account turned in a deficit of US$3.8 billion in August, 9.8% lower than in the same month in 2013. Net expenditures on international travel reached US$1.9 billion, a 9.8% expansion over August 2013. This trajectory was due to a 3.6% decline under foreigners' expenditures in Brazil and a 6.6% expansion under Brazilian tourists' expenditures abroad. Net transportation expenditures totaled US$836 million, 8.3% less than in the same month in 2013. Among the other items in the service account, it should be highlighted the decline of net expenditures on equipment rentals, 8.7%, and expansion on royalties and license fees, 6%, on the same comparison basis.
Net remittances abroad totaled US$3 billion in the month, a 7.8% decrease when compared to August 2013. Net remittances of profits and dividends totaled US$2.3 billion in the month, compared with US$2 billion in the same period in 2013. In the year up to August, gross remittances of profits and dividends totaled US$17.5 billion, a decline of 6.5% against the first eight months of 2013. Net interest expenditures totaled US$650 million in the month, compared to US$799 million in August 2013.
Unilateral transfers registered net inflows of US$86 million in the month, compared with US$241 million in August 2013. The gross inflow of remittances for the maintenance of residents totaled US$152 million, down 11.9% in the same comparison period.
Brazilian direct investments abroad turned in net amounts of US$1.2 billion in August. Equity capital participation in companies abroad added up net investments of US$2.1 billion, while net inflows of amortizations of intercompany loans totaled US$898 million.
Net FDI inflows totaled US$6.8 billion in the month, consisting of US$4.5 billion in equity capital participation and US$2.3 billion in net disbursements of intercompany loans. In terms of 12-month period up to August, net FDI inflows added up US$67 billion, or 2.97% of GDP.
Foreign portfolio investments registered net inflows of US$5.4 billion in August, including net inflows of US$1.6 billion in stocks and US$3.7 billion in fixed-income securities. Investments in fixed-income securities traded in the country amounted to net inflows of US$3.4 billion. Public bonds traded abroad turned in net inflows of US$1.5 billion, consisting of earnings on the issuance of Global 45, US$3.6 billion, and amortizations of other papers issued by the Republic received in exchange, US$2.1 billion. Net repayments of notes and commercial papers reached US$1.3 billion in the month, comprising disbursements of US$410 million and amortizations of US$1.7 billion. Disbursements of short-term fixed-income securities traded abroad reached US$174 million.
Other Brazilian investments abroad registered net amounts of US$6.2 billion in August. Net concessions of loans and short-term trade credits granted abroad added up US$5.2 billion. Deposits held abroad by banks headquartered in Brazil were reduced by US$690 million, while nonfinancial sector's deposits abroad increased US$1.6 billion.
Other foreign investments in the country added up net inflows of US$3 billion in August. Suppliers' credits amounted to net disbursements of US$2.3 billion, mostly concentrated in short-term transactions. Medium- and long-term loans registered net amortizations of US$129 million.
II - International reserves
International reserves in the liquidity concept totaled US$379.4 billion in August, an expansion of US$315 million over July. In August, the stock of repurchase lines reached US$200 million, a decline of US$2.1 billion from July. Revenue earnings on reserves totaled US$251 million. Price variations increased reserve stocks by US$607 million, while parity variations represented an expansion of US$684 million. In the cash concept, the stock of international reserves reached US$379.2 billion in August, up US$2.4 billion from July.
III - Foreign debt
The gross foreign debt position estimated for August totaled US$333.1 billion, a decline of US$131 million against June 2014. The estimated long-term foreign debt reached US$288.3 billion, a decline of US$2.6 billion, while the short-term debt stock remained stable at US$44.8 billion, an increase of US$2.4 billion when compared with June 2014.
The long-term external debt variation in the period was explained by net repayments of long-term loans by the financial sector, US$3.8 billion, and net disbursements associated with the issuance of Republic bonds, US$1.5 billion. The short-term foreign debt variation was consequent upon short-term loans taken by the financial and nonfinancial sectors, US$1.5 billion and US$636 million, respectively.