I - Balance of Payments - October 2016
In October, the current account posted a deficit of US$3.3 billion, accumulating a negative balance of US$22.3 billion, which is equivalent to 1.25% of GDP. In the financial account, net inflows exceeded net outflows by US$3.2 billion, highlighting net inflows of US$8.4 billion under direct investments into Brazil and a reduction of US$1.7 billion under portfolio investment - liabilities.
The service account registered net expenditures of US$2.8 billion in the month, remaining at the same level as October 2015. Using the same comparison basis, net expenditures on intellectual property services grew by 17.8%, while net expenditures on equipment rentals and transport dropped by 18.6% and 9.3%, respectively. The international travel item posted net expenditures of US$988 million, 80% higher than in the same period of the previous year. Revenues from travel decreased by 4.3%, while expenditures increased by 41.9%, compared with October 2015.
Primary income net expenditures totaled US$3.0 billion in October 2016, falling by 15.0% compared with the same period of the previous year. Net expenditures of profits and dividends reached US$1.6 billion, falling by 31.0% compared with the corresponding month of 2015. Net expenditures on interests added up to US$1.5 billion, rising by 13.4% using the same comparison basis.
The secondary income account posted net inflows of US$330 million in October 2016. Net revenues from personal transfers reached US$67 million in the month, falling by 64.0% when compared with the same month of 2015.
Direct investments abroad increased by US$1.0 billion in the month, focused on equity capital participation, and remained stable against October of the previous year.
Net inflows of direct investments in the country totaled US$8.4 billion, reflecting net inflows of US$4.7 billion in equity capital participation, including net inflows of US$816 million related to reinvested earnings, and net credits of US$3.7 billion received from abroad referring to intercompany operations. Over twelve months, net inflows of direct investments in the country added up to US$75.1 billion, equivalent to 4.20% of GDP.
Portfolio investment - liabilities posted net outflows of US$1.7 billion in October, comprising net inflows of US$1.6 billion in stocks and funds, and outflows of US$3.3 billion in fixed-income securities traded abroad and on the domestic market.
Other investment - assets rose by US$1.3 billion, comprising, among other items, US$2.7 billion in trade credits and advances, an increase of US$8.0 billion in deposits held by Brazilian banks abroad, and a reduction of US$9.4 billion in deposits by nonfinancial sector's individuals and companies.
Other investment - liabilities posted net outflows of US$1.2 billion. Trade credits and advances grew by US$753 million, mainly in short-term operations. Net amortizations of long-term loans reached US$2.1 billion, while net inflows from short-term loans totaled US$218 million.
II - International reserves
International reserves according to the liquidity concept totaled US$375.4 billion in October 2016, falling by US$2.4 billion compared to the previous month. The stock of repurchase lines reached US$7.9 billion in October 2016, growing by US$525 million when compared with the previous month. Income regarding earnings on reserves totaled US$255 million in October, while price and parity variations reduced the stock of reserves by US$836 million and US$1.7 billion, respectively. In the cash concept, the stock of reserves reached US$367.5 billion in October, falling by US$2.9 billion compared with the previous month.
III - External debt
The estimated gross external debt for October 2016 totaled US$335.4 billion, decreasing by US$1.1 billion compared to the amount estimated for June 2016. The estimated long-term external debt reached US$269.5 billion, falling by US$3.2 billion, while the short-term debt totaled US$65.9 billion, rising by US$2.1 billion in the same comparison basis.
Among the factors underlying the long-term external debt variation over the period, items worth highlighting are the US$4.4 billion in amortizations of loans of nonfinancial companies, and US$1.5 billion in disbursements of government bonds. The variation of the short-term external debt over the period was mainly due to loan disbursements of US$1.8 billion received by the financial sector.