I - Balance of payments - January 2014
The balance of payments posted a surplus of US$2.9 billion in January. The current account turned in a deficit of US$11.6 billion, accumulating a deficit of US$81.6 billion over 12 months, equivalent to 3.67% of GDP. The financial account registered net inflows of US$14 billion, highlighting foreign direct investments (FDI), US$5.1 billion, and foreign portfolio investments, US$2.7 billion.
The service account registered a deficit of US$3.4 billion in January, 8.1% lower than in the same month of 2013. Net expenditures on transport totaled US$743 million, a decline of 11.4% in the same comparison basis. The international travel item recorded net expenditures of US$1.5 billion, down by 7.8% when compared to January 2013. This result was impacted by reductions under expenditures of Brazilian tourists traveling abroad, 7.8%, and foreign travelers in Brazil, 7.7%. Most relevant increases occurred under expenditures on equipment rental, 2.3%, and royalties and license fees, 6.8%. Other items in the service account registered declines under net expenditures: computing and information, 40.9%, and insurance, 7.4%. Net revenues on financial services dropped 11.1%.
Net remittances of income abroad totaled US$4.3 billion in the month, up 13% from January 2013. Total net expenditures on profits and dividends added up US$2.5 billion, up from US$2.1 billion in the same month of 2013, while net expenditures on interests totaled US$1.9 billion, an increase of 3.5% in the same comparison period. Net outflows of income on direct investments totaled US$2.3 billion, 40.8% up from January 2013. Net remittances of income on portfolio investments totaled US$1.5 billion, resulting from net expenditures on profits and dividends, US$329 million, and interests on fixed-income securities, US$1.2 billion. Net expenditures of income on other investments totaled US$488 million, a decline of 15.1% against the same month of the previous year.
Unilateral transfers recorded net inflows of US$171 million, a drop of 10% against January 2013. The gross inflow of income for the maintenance of residents totaled US$145 million, a decline of 8.4% in the same comparison period.
Brazilian direct investments abroad registered net applications of US$116 million, including net applications of US$4.1 billion in the purchase of equity participation in the capital of companies abroad, while net inflows of income from intercompany loans of affiliated companies to headquarters in Brazil amounted to US$4 billion.
Foreign direct investments totaled net inflows of US$5.1 billion. Net inflows of equity capital participation in companies headquartered in Brazil reached US$3.5 billion, while net disbursements of intercompany loans totaled US$1.6 billion. Over twelve months, net FDI inflows totaled US$65.4 billion, equivalent to 2.94% of GDP.
Foreign portfolio investments posted net inflows of US$2.7 billion in January, consisting of net outflows of US$591 million in stocks and net inflows of US$3.3 billion in fixed-income securities. Investments in fixed-income securities traded in Brazil amounted to net inflows of US$2.6 billion. Net repayments of public bonds traded abroad, including repurchases on the secondary market, came to US$61 million. Net inflows of notes and commercial papers totaled US$727 million in the month. There were no transactions with short-term fixed-income securities traded abroad.
Other Brazilian investments abroad registered net returns of US$2.6 billion, comprising, among others, a reduction of US$4 billion in the balance of deposits held by Brazilian banks abroad and an expansion of US$870 million in deposits held by nonfinancial companies. Net repayments of loans and short-term trade credits granted abroad totaled US$590 million in the month.
Other foreign investments in the country registered net inflows of US$2.5 billion. Trade suppliers' credits totaled net disbursements of US$2 billion, focused on short-term transactions. Medium and long-term loans turned in net inflows of US$587 million, driven by net disbursements of direct loans, US$244 million, and buyers' loans, US$228 million.
II - International reserves
International reserves, in the liquidity concept, totaled US$375.5 billion in January, down from US$332 million against December. In the month, the settlement of repo lines resulted in net purchases of US$2.5 billion, while the stock totaled US$14.5 billion. Revenue earnings on reserves totaled US$254 million. Price variations increased the stock by US$805 million, while parity variation reduced the stock by US$1.6 billion. In the cash concept, the stock of reserves reached US$360.9 billion in January, an increase of US$2.1 billion when compared to the previous month.
III - External debt
The position of the gross external debt estimated for January totaled US$311.3 billion, an increase of US$766 million against the amount estimated for December 2013. The estimated long-term external debt reached US$279.9 billion, up US$765 million, while the short-term debt stock remained stable at US$31.4 billion.
The variation of the long-term external debt in the period is explained by net inflows of securities by the financial sector, US$591 million, and loans taken by the nonfinancial sector, US$505 million. The parity variation decreased the stock by US$713 million.