I - Balance of Payments - November 2016
In November, the current account posted a deficit of US$878 million, accumulating a deficit of US$20.3 billion (equivalent to 1.12% of GDP) over the last twelve months. In the financial account, the growth in liabilities surpassed the increase of assets by US$652 million, the highlights being net inflows of US$8.8 billion in net direct investment into Brazil, net extending of US$4.3 billion in commercial credit assets, and net outflows of US$3.1 billion in fixed-income securities traded in the domestic market.
The services account registered a net expenditure of US$2.3 billion in the month, a similar level compared to observed in November 2015. Using the same basis of comparison, net expenditure on intellectual property services showed relative stability, while net expenditure on equipment rental fell by 11.0%. The international travel account recorded net expenditure of US$731 million, increasing by 44.9% over the same comparative period. Revenue and expenditure on travel grew by 1.3% and 23.9%, respectively, compared with November 2015.
Primary income net expenditures reached US$3.3 billion in November 2016, increasing by 90.1% compared with the same period of the previous year. Net remittances of profits and dividends reached US$2.0 billion, increasing by 125.1% compared with the same month of 2015. Net expenditures on interest totaled US$1.4 billion, increasing by 54.0% using the same comparison basis.
The secondary income account recorded net inflows of US$271 million in November 2016. Net revenue from personal transfers reached US$90 million in the month, falling by 1.4% compared with what was recorded in November of the previous year.
The net constitution of direct investment assets abroad reached US$217 million in November 2016, compared with the net decrease of US$984 million observed in same month of 2015.
Direct investment into Brazil totaled net inflows of US$8.8 billion, reflecting positive flows of US$6.9 billion in equity capital, including net inflows of US$636 million resulting from reinvested earnings, and net credits received from abroad, US$1.9 billion, in intercompany operations. Over the 12 month period, direct net investment into the country totaled US$78.9 billion, equivalent to 4.38% of GDP.
Portfolio investment - liabilities posted net outflows of US$839 million in November, comprising net inflows in equities and investment funds, US$194 million, outflows in fixed-income securities traded in the domestic market, US$3.1 billion, and net inflows in fixed-income securities traded in the foreign markets, US$2.1 billion. The rollover rate for long-term securities traded in the foreign market was 310%, which contributed to the overall rollover rate, including direct loans, reaching 190% in November.
Other investment - assets recorded an increase of US$8.0 billion, comprising, among other factors, US$4.3 billion in trade credits and advances, and an expansion of US$3.5 billion in deposits held by Brazilian banks abroad.
Other investment - liabilities posted net inflows of US1.3 billion. Trade credits and advances grew by US$1.8 billion, mainly in short-term operations. Net amortizations of long-term and short-term loans reached, US$329 million and US$77 million, respectively.
II - International reserves
International reserves according to the liquidity concept totaled US$372.8 billion, falling by US$2.7 billion compared with the previous month. Compared with October 2016, the stock of repurchase lines fell by US$700 million. Income regarding earnings on reserves totaled US$247 million in November, while price and exchange rate changes contributed to reducing the debt stock by US$1.6 billion and US$1.4 billion, respectively. In the cash concept, the stock of reserves reached US$365.6 billion in November, representing a monthly decrease of US$2.0 billion.
III - External debt
The estimated gross external debt for November 2016 totaled US$333.8 billion, falling by US$4.5 billion compared with the amount estimated for September 2016. The estimated long-term external debt reached US$267.7, falling by US$4.6 billion, while short-term debt remained stable at US$66.1 billion during the same period.
Among the factors underlying the long-term external debt variation over the period, items worth highlighting are the falls in debt stock caused by the exchange rate changes, US$2.2 billion, and the decrease in the price of government bonds, a further US$2.2 billion.