Economic Information

PRESS RELEASE - September 22, 2015

Foreign Sector
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I - Balance of payments - August 2015

The current account turned in a deficit of US$2.5 billion in August, accumulating a deficit of US$84.5 billion over the last 12 months, equivalent to 4.34% of GDP. As for the financial account, net inflows exceeded net outflows by US$2.1 billion, highlighting net inflows of US$5.2 billion under the modality of direct investments in the country.

The service account registered net expenditures of US$2.6 billion in the month, a fall of 30.2% in comparison with August 2014. Net expenditures on transportation dropped 55.6%, in the same comparison basis, reaching US$365 million. The item international travel registered net expenditures of US$827 million, 55.5% below the value registered in August of the previous year, as a result of declines of 46.3% in Brazilian tourists' expenditures abroad and 11.7% in foreign travelers' expenditures in Brazil. Net expenditures on equipment rentals totaled US$1.4 billion, 4.2% above the figures registered for August 2014. In the same comparison basis, net expenditures on intellectual property services and telecommunications, computing and information fell by 16% and 23.6%, in that order.

Primary income net expenditures totaled US$2.6 billion in August, a reduction of 38.8% in comparison with the same month of the previous year. Net expenditures on profits and dividends reached US$1.5 billion, compared to US$3 billion in August 2014. Net interest expenditures totaled US$1 billion, 10.7% lower than the result of the comparison period. Net outflows related to income on direct investments totaled US$1.5 billion, a reduction of 44.4% in comparison with August 2014. Net expenditures regarding income on portfolio investments fell to US$900 million, consisting of net expenditures on profits and dividends, US$307 million, and interests on securities traded on the foreign and domestic markets, US$224 million and US$369 million, respectively. Net expenditures regarding income on other investments totaled US$384 million, 42.5% higher than in August of the previous year, while earnings on reserves reached US$219 million.

The secondary income account posted net inflows of US$219 million. Gross revenues related to personal transfers reached US$212 million in the month, 30.6% above the result observed in August of the previous year.

Direct investments abroad totaled net remittances of US$308 million, comprising US$363 million under equity capital, including US$443 million from reinvestments of earnings, and returns of US$55 million from intercompany loans.

Direct investments in the country increased by US$5.2 billion, of which US$3.3 billion in equity capital, including US$785 million related to reinvestments of earnings and US$2 billion from intercompany loans. In 12 months, net inflows of directs investments in the country totaled US$73.6 billion, equivalent to 3.71% of GDP.

Portfolio investment - liabilities totaled net outflows of US$1.6 billion in August, consisting of net remittances of US$1.1 billion in stocks and US$673 million in fixed-income securities, and net inflows of US$181 million in investment funds. Fixed-income securities traded in the country totaled net inflows of US$741 million. Operations with sovereign bonds traded abroad totaled amortizations of US$1.2 billion, resulting from the Treasury option for early and full amortization of Global 40 bonds. Other long-term fixed-income securities traded abroad turned in net amortizations of US$259 million, while short-term securities posted net inflows of US$30 million.

Other investment - assets increased by US$3.7 billion, comprising an expansion of US$507 million in deposits held by Brazilian banks abroad, and US$569 million in deposits held by nonfinancial companies. Trade credits and advances grew by US42.7 billion in August.

Other investment - liabilities posted net inflows of US$3.1 billion. Net inflows of trade credits and advances reached US$1.7 billion, focused on short-term operations. Loans totaled net inflows of US$1.5 billion.

II - International reserves

International reserves according to the liquidity concept totaled US$370.6 billion in August 2015, a reduction of US$193 million in comparison with the previous month. In August, the stock of repurchase lines reached US$2.4 billion, a decrease of US$100 million in relation to the July 2015 position. Income related to earnings on reserves totaled US$219 million. Price and parity variations reduced the stock by US$349 million and US$147 million, respectively. In the cash concept, the stock of reserves reached US4368.2 billion in August, a decrease of US$93 million when compared to the previous month.

III - External debt

The gross external debt position estimated for August totaled US$346 billion, a reduction of US$3.2 billion in relation to the amount calculated for June 2015. The estimated long-term external debt reached US$287.1 billion, a reduction of US$2.2billion, while the short-term indebtedness totaled US$58.9 billion, a decline of US$1 billion over the same period.

Among the factors underlying the variation of the long-term external debt, it is worth noting net loans taken by the financial sector, US$2.4 billion, amortization of government securities, US41.3 billion, and reductions resulting from parity and price variations, US$1.4 billion and US$1.5 billion, respectively. The variation of the short-term external debt in the period is mainly explained by amortizations of loans taken by the nonfinancial sector, US$839 million.