I - Balance of payments - October 2013
The balance of payments registered a deficit of US$4.5 billion in October. The current account deficit reached US$7.1 billion in the month and US$67.5 billion in the year through October, up from US$39.6 billion in the same period of 2012. In the 12-month period up to October, the current account accumulated a deficit of US$82.2 billion, equivalent to 3.67% of GDP. The financial account recorded a surplus of US$2.5 billion in the month, highlighting net inflows of foreign direct investments (FDI), US$5.5 billion.
The service account posted a deficit of US$4.9 billion in October, up from US$4 billion in the same month of 2012. Net expenditures on international travel totaled US$1.8 billion, 15.9% higher than in October 2012, reflecting a 10.9% increase under Brazilian tourists' expenditures abroad and a 3.1% reduction under foreign tourists' expenditures in the country. Net transportation expenditures totaled US$962 million, up by 17.4% on the same comparison basis. Net expenditures on computer and information services reached US$349 million, 43.4% higher than in October 2012. Net expenditures on equipment rentals totaled US$2.2 billion, an expansion of 22.9% when compared to the same month of last year. Net expenditures on royalties and license fees totaled US$263 million, down by 17.9% on the same comparison basis.
Net remittances of income abroad totaled US$2.6 billion in October, 23.4% lower than in October 2012. Net expenditures on profits and dividends totaled US$1.3 billion in the month, down from US$2.4 billion in the same period of last year. In 2013 through October, gross remittances of profits and dividends totaled US$22.8 billion, an increase of 3.9% over the first ten months of 2012. Net interest expenditures totaled US$1.3 billion in the month, 19.8% up from net interest remittances observed in October 2012.
Unilateral transfers totaled net inflows of US$636 million in the month, as compared to US$317 million in October 2012. Gross income specifically related to the maintenance of residents reached US$73 million in the month and US$1.6 billion in the year, 4.8% below the result observed from January to October 2012.
Brazilian direct investments abroad posted net returns of US$166 million in the month. Equity capital participation in companies abroad added up net investments of US$739 million, while net returns associated with intercompany loans totaled US$904 million.
Net FDI inflows reached US$5.4 billion in October, comprising US$2.5 billion under the modality of equity capital participation and US$2.8 billion under net disbursements of intercompany loans. In the 12-month period up to October, net FDI inflows totaled US$59.1 billion, equivalent to 2.64% of GDP.
Foreign portfolio investments turned in net inflows of US$260 million in October, comprising net inflows of US$193 million in stocks and US$67 million in fixed-income securities. Investments in fixed-income securities traded in Brazil amounted to net inflows of US$196 million, down from US$7.2 billion in the previous month. Net repayments of notes and commercial papers totaled US$129 million in the month. There were no transactions with short-term fixed-income securities traded abroad.
Other Brazilian investments abroad registered net investments of US$6.4 billion in October. Net loans and trade credits abroad totaled US$4.8 billion. Deposits held abroad by banks headquartered in Brazil expanded by US$426 million, while the balance held by nonfinancial enterprises increased by US$1.2 billion.
Other foreign investments in the country posted net inflows of US$3.9 billion in October. Suppliers' credits recorded net disbursements of US$2.5 billion, concentrated on short-term transactions. Medium and long-term loans totaled net inflows of US$1.6 billion, highlighting buyers' loans of US$991 million.
II - International reserves
International reserves in the liquidity concept totaled US$376.9 billion in October, an increase of US$851 million when compared to the previous month's stock. In October, the Central Bank carried out net foreign currency sales of US$5 billion under the modality of repurchase agreement (repo operations). The stock of these operations totaled US$12.4 billion at the end of October. In the cash concept, the stock of reserves reached US$364.5 billion in October, down by US$4.1 billion as compared to the previous month.
Earnings on reserves totaled US$269 million. Price variation increased the stock by US$461 million, while the parity variation reduced the stock by US$125 million.
III - External debt
The stock of the total external debt estimated for October totaled US$311 billion, an expansion of US$1.9 billion when compared to the amount estimated for September. The estimated long-term external debt reached US$279.1 billion, up by US$1.9 billion, while the stock of short-term debt remained stable at US$31.9 billion.
The variation of the long-term external debt in the period is explained by net inflows of the nonfinancial sector and government borrowings of US$1.2 billion and US$305 million, respectively. The parity variation increased the debt stock by US$249 million.