Economic Information

PRESS RELEASE - May 23, 2017

Foreign Sector
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I - Balance of payments - April 2017

The current account posted a surplus of US$1.2 billion in April, influenced by a record trade balance for this month of the year. In the 12-month period ending in April, the current account posted a deficit of US$19.8 billion, equivalent to 1.06% of GDP. In the financial account, net inflows of direct investments into Brazil totaled US$5.6 billion in the month, accumulating US$84.7 billion over the last twelve months, or 4.50% of GDP.

The service account posted a deficit of US$2.5 billion in April, remaining stable when compared with the same month of the previous year. The item international travel posted net expenditures of US$908 million, increasing by 50.9% in comparison with April 2016, due to growth of 23.1% under Brazilian tourists' expenditures abroad and decline of 12.1% under foreign travelers' expenditures in Brazil. Expenditures on equipment rentals posted a deficit of US$1.4 billion in the month, falling by 21.7% as compared with April 2016.

Primary income net expenditures totaled US$3.2 billion in the month, increasing by 67.3% compared with April 2016. Net expenditures on interests added up to US$2.3 billion, 66.9% higher than in April 2016. Net remittances on profits and dividends reached US$944 million in the month, increasing by 63.1% when compared with April 2016.

The secondary income account posted net inflows of US$152 million, falling by 34.9% compared with April of the previous year. Gross revenues related to personal transfers totaled US$162 million, decreasing by 13.2% when compared with April 2016.

Direct investments abroad rose by US$69 million in the month. Net inflows totaled US$774 million in the first four months of the year, 71.0% lower than in the corresponding period of the previous year.

Net inflows of direct investments in the country totaled US$5.6 billion in April, falling by 18.4% in comparison with the same month of the previous year. Net inflows of US$6.9 billion in equity capital were partially offset by net outflows of US$1.4 billion in intercompany loans.

Portfolio investment - liabilities posted net inflows of US$4.4 billion in the month, highlighting net inflows in fixed-income securities traded on the domestic market, US$4.4 billion, which turned positive this modality's cumulative flow in the year. As for stock investments traded on the domestic market, net outflows reached US$896 million, while those traded abroad registered net inflows of US$391 million.

Other investment - assets totaled US$7.8 billion in April, with emphasis on the increase of net deposits abroad, US$5.5 billion, and net investments of US$2.4 billion in trade credits and advances.

Other investment - liabilities grew by US$1.2 billion in April, including net inflows of US$2.6 billion in trade credits and advances, and net outflows of US$1.4 billion in loans.

II - International reserves

International reserves according to the liquidity concept totaled US$376.3 billion in April 2017, increasing by US$984 million in comparison with the previous month. The stock of repurchase lines fell by US$3.9 billion as compared with the March's position. Income regarding earnings on reserves added up to US$300 million in the same period, while price and parity variations increased the stock by US$334 million and US$84 million, respectively. In the cash concept, the stock of reserves reached US$374.9 billion in April, an increase of US$4.8 billion compared with the previous month.

III - External debt

The estimated gross external debt for April 2017 totaled US$319.7 billion, falling by US$1.6 billion compared with December 2016. The estimated long-term external debt reached US$263.2 billion, decreasing by US$1.8 billion, whereas the short-term debt totaled US$56.5 billion, increasing by US$158 million in the same period.

Among the factors underlying the long-term external debt variation between December 2016 and April 2017, items worth highlighting were: US$1.2 billion in amortizations of sovereign bonds, US$1.2 billion in net disbursements of securities issued by the financial sector, US$3.6 billion and US$1.2 billion in amortizations of loans and securities, respectively, by other sectors. The variation of exchange rates and prices of sovereign bonds contributed to raise the stock of long-term external debt by US$727 million and US$2.2 billion, respectively.