I - Balance of payments - March 2016
In March, the current account posted a deficit of US$855 million, accumulating a negative balance of US$41.4 billion over the last twelve months, which is equivalent to 2.39% of GDP. In the financial account, net inflows exceeded net outflows by US$355 million, highlighting net inflows of US$5.6 billion under the modality of direct investments in Brazil.
The service account registered net expenditures of US$2.9 billion in the month, declining by 23.1% as compared to March, 2015. In the same comparison basis, net expenditures on transportation dropped by 37.6% to US$348 million. The item international travel posted net expenditures of US$694 million, dropping by 27.3% when compared to the same month in the previous year. This result was influenced by a decrease of 14.1% in Brazilian tourists' expenditures abroad and an increase of 8.8% in foreign travelers' expenditures in Brazil. Items worth highlighting were the reductions in net expenditures on equipment rental, 27%; telecommunications, computing and information, 29.1%; and intellectual property services, 2.5%.
Net primary income expenditures totaled US$2.4 billion in the month, rising by 6.2% as compared to March 2015. Net remittances of profits and dividends reached US$1.4 billion, as compared to US$1.2 billion in March 2014, growing by 17.6%, while expenditures on interests totaled US$1.1 billion, falling by 7.6% in the same comparison basis. Net outflows related to income on direct investments totaled US$1.5 billion, 41.9% higher than in March 2015. Net expenditures regarding income on portfolio investments totaled US$725 million, comprising net expenditures on profits and dividends, US$464 million; interests on securities negotiated on the foreign markets, US$261 million; and interest om securities negotiated on the domestic market, US$1 million. Net expenditures regarding income on other investments amounted to US$537 million, 0.4% above March 2015, whereas income related to earnings on reserves increased by 19.6%.
The secondary income account posted net inflows of US$240 million, rising by 42.3% compared to March 2015. Personal transfer revenues reached US$206 million in March, 4.3% more than in same month of the previous year.
Direct investments abroad increased by US$1.5 billion, including an expansion of equity capital participation of US$1.9 billion, comprising reinvestments of earnings, and a reduction of US$385 million of intercompany loans.
Net inflows of direct investments in Brazil increased by US$5.6 billion, of which US$3.1 billion in equity capital participation, including US$611 million from reinvestments of earnings, and US$2.5 billion from intercompany loans. In 12 months, Net inflows of direct investments in the country totaled US$78.9 billion, corresponding to 4.56% of GDP.
Portfolio investment - liabilities posted net outflows of US$1.7 billion in March. Investments in stocks and investment funds posted net inflows of US$1.8 billion and US$203 million, respectively. Items worth highlighting are net outflows of fixed-income securities, US$375 million, composed of net outflows of US$2 billion in securities negotiated on the domestic market; net inflows of operations with sovereign securities negotiated abroad, US$1.4 billion, including the issuance of the Global 2026 foreign debt security, US$1.5 billion. Other long-term fixed-income securities negotiated abroad posted net inflows of US$308 million, while the short-term ones totaled net amortizations of US$89 million.
Other investment - assets rose by US$8.7 billion, comprising an expansion of US$3.4 billion in deposits held by nonfinancial companies and US$2 billion held by Brazilian banks abroad. Trade credits and advances grew to US$3.4 billion in March.
Other investment - liabilities posted net amortizations of US$1.1 billion. Trade credits and advances reached US$1.5 billion, focused on short-term transactions. Net amortizations of long-term loans reached US$6.4 billion, while net inflows of short-term loans totaled US$3.8 billion in the month.
II - International reserves
International reserves according to the liquidity concept totaled US$375.2 billion in March 2016, increasing by US$3.5 billion compared with the previous month. In March, the stock of repurchase lines reached US$17.5 billion, increasing by US$5.2 billion against February 2016. Income regarding earnings on reserves added up to US$249 million in the month, while price and parity variations increased the stock by US$337 million and US$2.7 billion, respectively. In the cash concept, the stock of reserves reached US$357.7 billion in March, falling by US$1.7 billion as compared to the previous month.
III - External debt
The estimated gross external debt for March totaled US$333.6 billion, decreasing by US$1 billion as compared to the amount calculated for December 2015 The estimated long-term external debt reached US$274.6 billion, falling by US$9 billion, whereas the short-term indebtedness added up to US$59 billion, increasing by US$8 billion.
Among the factors underlying the long-term external debt variation in the quarter, items worth highlighting include the amortization of loans and securities taken by the financial sector of US$11.2 billion and US$1.5 billion, respectively; in addition to the increases arising from exchange variations, US$1.6 billion, and price variations, US$2.5 billion. The variation of the short-term external debt in the period is mainly explained by loans taken by the financial and nonfinancial sectors of US$6.6 billion and US$1.4 billion, respectively.