I - Balance of payments - February 2014
The balance of payments recorded a surplus of US$222 million in February. The current account deficit came to US$7.4 billion, accumulating a negative balance of US$82.5 billion over the last twelve months, equivalent to 3.69% of GDP. The financial account posted net inflows of US$7.6 billion, highlighting foreign direct investments (FDI), US$4.1 billion, and foreign portfolio investments, US$2.2 billion.
The service account registered a deficit of US$3.5 billion in February, 11.1% above the same month in 2013. Net transportation expenditures totaled US$690 million, an increase of 13% using the same comparison basis. International travel recorded net expenditures of US$1.3 billion, an increase of 6.9% when compared to February 2013. This trajectory was impacted by a 2.9% increase in expenditures by Brazilian tourists traveling abroad and a decline of 5.2% in expenditures by foreigners traveling in Brazil. It should be highlighted expansions under net expenditures on equipment rentals, 15.8%; royalties and license fees, 62.7%; and insurance, 69.1%, as opposed to declines under computer and information, 20.4%, and net revenues on financial services, 69.2%.
Net remittances of income abroad totaled US$2 billion in the month, a decrease of 26.7% compared to February 2013. Total net expenditures on profits and dividends totaled US$1.3 billion, down from US$2.2 billion in the same month in 2013, while net expenditures on interests totaled US$701 million, an expansion of 34.3% in the period under analysis. Net outflows of income on direct investments totaled US$1.2 billion, 31.9% lower than in February 2013. Net remittances of income on portfolio investments totaled US$429 million, resulting from net expenditures on profits and dividends, US$336 million, and interests on fixed-rate securities, US$93 million. Net expenditures of income on other investments totaled US$351 million, a falloff of 0.7% compared to the same month of the previous year.
Unilateral transfers recorded net inflows of US$114 million, down 77.2% from February 2013. The gross inflow of income for the maintenance of residents totaled US$134 million, a decline of 5.2% in the same comparison basis.
Brazilian direct investments abroad turned in net income of US$582 million, including net investments of US$723 million in the acquisition of equity capital participation in companies abroad, while net inflows of intercompany loans from affiliated companies abroad to Brazilian headquarters totaled US$1.3 billion.
Foreign direct investments totaled net inflows of US$4.1 billion. Net inflows of equity capital participation in Brazilian companies reached US$3.3 billion, while net disbursements of intercompany loans added up US$868 million. In twelve months, net FDI inflows totaled US$65.8 billion, equivalent to 2.94% of GDP.
Foreign portfolio investments registered net inflows of US$2.2 billion in February, consisting of net outflows of US$393 million in stocks and net inflows of US$2.6 billion in fixed-rate securities. Investments in fixed-rate securities traded in Brazil amounted to net inflows of US$3.2 billion. Net repayments of public bonds traded abroad, including repurchases on the secondary market, totaled US$620 million. Net repayments of notes and commercial papers amounted to US$53 million in the month. There were no transactions with short-term fixed-rate securities traded abroad.
Other Brazilian investments abroad showed net investments of US$2.2 billion, comprising, among others, a reduction of US$2.5 billion in the balance of deposits held by Brazilian banks abroad and expansion of US$1.4 billion in deposits held by nonfinancial enterprises. Net repayments of short-term loans and trade credits granted abroad totaled US$3.2 billion in the month.
Other foreign investments in the country registered net inflows of US$2.8 billion. Trade credits from suppliers totaled net disbursements of US$946 million, focused on short-term transactions. Medium and long-term credits totaled net inflows of US$2.1 billion, influenced by net disbursements of direct loans, US$1.5 billion, and buyers' loans, US$508 million.
II - International reserves
International reserves in the liquidity concept totaled US$377.2 billion in February, an increase of US$1.8 billion compared to the stock of the previous month. In February, the stock of repurchase lines remained at US$14.5 billion, while earnings on reserves totaled US$227 million. Price and parity variations increased the stock by US$8 million and US$1.5 billion, respectively. In the cash concept, the stock of reserves reached US$362.7 billion in February, an increase of US$1.8 billion against the previous month.
III - External debt
The position of the gross external debt estimated for February totaled US$311.8 billion, an expansion of US$3.2 billion compared to December 2013. The estimated long-term external debt reached US$279.2 billion, an increase of US$3.1 billion, while the short-term debt stock remained stable at US$32.6 billion.
The variation of the long-term external debt in the period was consequent upon net inflows of securities and loans by the financial sector, US$1.4 billion, and loans by the nonfinancial sector, US$1.7 billion. Additionally, the parity variation increased the debt stock by US$219 million.