Henceforth, the Central Bank of Brazil (CBB) starts publishing external sector statistics of the Brazilian economy according to the International Monetary Fund (IMF)'s Sixth Edition of the Balance of Payments and International Investment Position Manual (BPM6). As of 2001, these statistics had been disclosed in compliance with the Fifth Edition of the Balance of Payments Manual (BPM5). The historical series of the balance of payments under BPM5 have been discontinued.
International methodological standards establish the guidelines for the compilation and release of macroeconomic accounts. In addition to ensure consistency among several macroeconomic statistics, they also have the purpose of allowing comparability among countries. BPM6 also takes into account economic and financial developments in the world's economy over the last fifteen years.
BPM6 defines the Balance of Payments (BOP) as the macroeconomic statistical statement that summarizes the transactions between residents and nonresidents during a period. It consists of the goods and services account, the primary income account and the secondary income account (which are the current account's components), the capital account, and the financial account. Among the principal changes are: the BOP presentational format; the names of some accounts; sign convention; and concepts. Further details regarding statistics on the Brazilian external sector under the BPM6 methodological standard are available on http://www.bcb.gov.br/?BALANCEPAY
I - Balance of Payments - March 2015
In March, the current account posted a deficit of US$5.7 billion, accumulating, over the last twelve months, a negative balance of US$101.6 billion, which corresponds to 4.54% of GDP. In the financial account, net inflows surpassed net outflows by US$5.2 billion, highlighting net inflows of foreign direct investments (FDI) of US$4.3 billion.
The service account turned in net expenditures of US$3.9 billion in the month, 6.4% up from March 2014. In the same comparison basis, net expenditures on transportation dropped by 16.2% to US$584 million, while net expenditures on international travel declined by 26.5% to US$955 million, reflecting a 18% decline in Brazilian tourists' expenditures abroad and a 2.9% increase in foreign travelers' expenditures in Brazil. It should be highlighted the expansion under net expenditures on equipment rentals, 28.9%, and telecommunications, computer and information, 51.9%; coupled with declines under net expenditures on intellectual property and insurance services, 19.3% and 8.4%, respectively.
Primary income net expenditures, formerly "income", reached US$2.2 billion in March, a 26.2% decline over March 2014. Net expenditures on profits and dividends totaled US$1.2 billion, as compared to US$2.1 billion in the corresponding month of the previous year (-42.7%), whereas net expenditures on interests added up to US$1.1 billion (+11.1%). Net outflows of revenues on direct investments totaled US$1 billion, 37.2% lower than in March 2014. Net expenditures related to revenues on portfolio investments reached US$991 million, comprising net expenditures on profits and dividends, US$594 million; interest on securities negotiated in the external market, US$396 million; and interest on securities negotiated in the domestic market, US$1 million. Net expenditures related to revenues on other investments added up to US$461 million, up 17.8% from March 2014, whereas revenues on reserve earnings fell by 15.8%.
The secondary income account, previously known as "unilateral transfers", posted net inflows of US$129 million, a 0.4% falloff as compared to March 2014, while personal transfers, a broader concept than the former "maintenance of residents", reached US$197 million, 17% up from March 2014.
The capital account, which includes transactions with nonfinancial nonproduced assets and capital transfers, turned in net inflows of US$14 million in March and US$76 million in the first quarter of 2015.
Direct investments abroad declined by US$329 million, comprising a decline of US$757 million under equity capital, including US$281 million from reinvestment of profits, and an increase of US$428 million from intercompany loans.
FDI in the country rose by US$4.3 billion, of which US$3.4 billion in equity capital, including US$504 million from reinvestment of profits, and US$824 million from intercompany loans. Over twelve months, net FDI inflows added up to US$88.8 billion, corresponding to 3.97% of GDP.
Portfolio investments - liabilities posted a net increase of US$2.9 billion in March, comprising net inflows of US$1.1 billion in stocks, US$216 million in investment funds, and US$1.6 billion in fixed-income securities. Fixed-income securities negotiated in Brazil posted net inflows of US$3.2 billion, including US$1 million regarding reinvestment of interests. Transactions with sovereign bonds that were negotiated abroad registered amortizations of US$1.1 billion. Other long-term fixed-income securities negotiated abroad posted net amortizations of US$713 million, whereas short-term securities posted net inflows of US$163 million.
Other investments - assets rose by US$2.3 billion, comprising expansion of US$1.3 billion in deposits held by nonfinancial companies and reduction of US$791 million in deposits held by Brazilian banks abroad. Trade credits and advances rose by US$1.6 billion in March.
Other investments - liabilities posted net expansion of US$3.2 billion. Trade credits and advances grew by US$1.9 billion, focused on short-term transactions. Loans grew by US$1.3 billion, especially short-term operations, US$925 million.
II - International reserves
International reserves in the liquidity concept totaled US$371 billion in March 2015, a reduction of US$1.1 billion when compared to February. The stock of repurchase lines reached US$8.3 billion, a decline of US$1.3 billion over February 2015. Income related to earnings on reserves added up to US$208 million. Price variations raised the stock of reserves by US$507 million, while parity variations reduced the stock by US$2 billion. In the cash concept, the stock of reserves reached US$362.7 billion in March, an expansion of US$197 million when compared to the previous month.
III - External debt
The estimated gross external debt position for March totaled US$347.8 billion, a decline of US$728 million against the December 2014 position. The long-term estimated external debt reached US$286 billion, a reduction of US$4.8 billion, whereas the short-term indebtedness totaled US$61.7 billion, an increase of US$1.4 billion in the same comparison period.
Among the factors underlying the long-term external debt variation in the period, it should be emphasized loans taken by the nonfinancial sector, US$1.5 billion; amortizations of government and financial sector's debt securities, US$1.7 billion and US$1.2 billion, respectively; and the decline consequent upon parity variations, US$3.6 billion. The variation of the short-term external debt in the period is mainly associated with short-term loans taken by the nonfinancial and financial sectors, US$398 million and US$1.3 billion, respectively.