Economic Information

PRESS RELEASE - October 26, 2017

Foreign Sector
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I - Balance of payments - September 2017

In September, the current account posted a surplus of US$434 million, reducing the deficit accumulated over 12 months to US$12.6 billion, equivalent to 0.63% of GDP. In the financial account, net direct investments into Brazil totaled US$6.3 billion in the month, accumulating US$83.4 billion over the last twelve months, equivalent to 4.18% of GDP.

The service account registered a deficit of US$2.9 billion in September, increasing by 10.7% compared with the same month of the previous year. Net expenditures on international travel totaled US$1.3 billion, growing by 53.8% when compared with September 2016, consequent upon an increase of 32.6% in spending on foreign travel, and a decrease of 8.2% in revenues generated by tourism in Brazil. Net expenditures on equipment rentals showed a deficit of US$1.2 billion in September, falling by 23.5% compared with the same month of the previous year.

Net primary income expenditures reached US$2 billion in the month, increasing by 20.2% when compared with September 2016. Net expenditures on interests totaled US$762 million, falling by 2.9% compared with the same period of the previous year. Net remittances of profits and dividends totaled US$1.3 billion in the month, increasing by 39.6% when compared with September 2016.

The secondary income account registered net inflows of US$390 million in the month, growing by 161% compared with September 2016. Personal transfers sent abroad exceeded those received into Brazil by US$24 million.

Net direct investments abroad amounted to US$1.2 billion in the month and US$2.9 billion in the period from January to September, growing by US$6.7 billion compared with the same period in 2016.

Direct investments into Brazil amounted to inflows of US$6.3 billion in the month (US$5.6 billion in equity capital and US$767 million in intercompany transactions), accumulating US$51.8 billion from January to September 2017, an expansion of 11.2% compared with the same period of 2016.

Portfolio investment - liabilities posted net inflows of US$2.1 billion in the month, including net inflows of US$815 million in shares and investment funds, and net outflows of US$884 million in fixed-income securities traded on the domestic market, while net inflows related to fixed-income securities traded on the international market reached US$2.2 billion. In September 2016, portfolio investment - liabilities had registered net outflows of US$4.9 billion.

Other investment - liabilities posted net inflows of US$1.1 billion in September, compared with net inflows of US$3.0 billion in the same month of the previous year. The account for loan liabilities registered net outflows of US$287 million, compared with net inflows of US$2 billion in September 2016.


II - International reserves

International reserves according to the liquidity concept totaled US$381.2 billion in September 2017, falling by US$599 million compared with the previous month. Revenues from earnings on reserves totaled US$330 million in the month, while price and parity the variations reduced the stock by US$965 million and US$63 million, respectively.


III - External debt

The estimated gross external debt for September 2017 totaled US$320.7 billion, rising by US$5.8 billion compared with June 2017. The estimated long-term foreign debt reached US$260.9 billion in September, increasing by US$1.9 billion, while the short-term debt totaled US$59.8 billion, growing by US$3.9 billion, in the same period.

Among the factors underlying the long-term external debt variation in the period from June to September, items worth highlighting were the increases arising from securities disbursements, US$2.0 billion, exchange rate variation, US$796 million, and the price variation of general government debt securities, US$1.1 billion. Amortizations of loans taken by financial and nonfinancial sectors reached US$2.0 billion. The increase in the short-term foreign debt in this period was mainly explained by loans in the amount of US$4 billion taken by the financial sector.