I - Balance of payments - January 2017
In January, the current account posted a deficit of US$5.1 billion, accumulating a total deficit of US$23.8 billion over the last 12 months, equivalent to 1.30% of GDP. In the financial account, net inflows exceeded net outflows by US$4.7 billion, highlighting net inflows of US$11.5 billion under the modality of direct investment into Brazil and net outflows of US$1.9 billion in fixed-income securities - liabilities. In the 12-month period ending in January, net inflows of direct investments into Brazil totaled US$85.0 billion, equivalent to 4.66% of GDP.
The service account turned in a deficit of US$2.4 billion in the month, rising by 74.9% when compared to January 2016. Net expenditures on international travel totaled US$914 million, rising by US$724 million against the same month of the previous year, consequent upon respective increases of 2.2% and 87.9% under revenues and expenditures. Net expenditures on equipment rental reached US$1.7 billion in January, remaining stable when compared to the result of the corresponding month in 2016. Net expenditures on transport reached US$436 million, increasing by US$261 million as compared January 2016.
Primary income net expenditures reached US$5.3 billion in the month, increasing by 23.7% compared with the same period of the previous year, with emphasis on net expenditures on portfolio investments, US$4.0 billion. Net expenditures on profits and dividends reached US$870 million, rising by 177.5% in comparison with the same month of 2016. Net expenditures on interests reached US$4.5 billion, of which, US$2.7 billion related to securities traded on the domestic market. Net expenditures on interests grew by 11.7% when compared with January 2016.
The secondary income account posted net inflows of US$174 million in the month, compared with net inflows of US$238 million in January 2016. Gross revenues related to personal transfers remained relatively stable, reaching US$193 million.
With regard to direct investment - assets, net inflows of US$138 million were observed in January, compared with net outflows of US$351 million observed in the same period of the previous year. Reinvested earnings abroad reached US$112 million.
Net inflows of direct investments in the country totaled US$11.5 billion, reflecting positive flows of US$8.8 billion in equity capital, comprising net inflows of US$457 million from reinvested earnings, and net inflows of US$2.8 billion in intercompany transactions.
Portfolio investment - liabilities posted net outflows of US$985 million in the month, comprising net inflows of stocks and funds, US$962 million, and fixed-income securities traded on the domestic market, US$502 million; couple with net outflows in fixed-income securities traded on the foreign market, US$2.4 billion.
Other investment - assets rose by US$2.3 billion in January, compared with a net decrease of US$1.3 billion in the same month of the previous year - including, among other items, grants of US$2.9 billion in trade credits and advances and a decrease of US$1 billion in deposits held by Brazilian banks abroad.
Other investment - liabilities posted a net decrease of US$2.7 billion, compared with a net decrease of US$388 million in the same period of the previous year. Trade credits and advances grew by US$578 million, while net amortizations of loans totaled US$3.2 billion, focused on short-term operations.
The rollover rate of long-term direct loans reached 135% in January, contributing to a total rollover rate of 112% in the month, including long-term securities traded on the international market.
II - International reserves
International reserves according to the liquidity concept totaled US$374.9 billion in January 2017, increasing by US$2.7 billion as compared with the previous month. In January, the stock of repurchase lines dropped US$5 million against the position of December 2016. The increase in the stock of reserves was consequent upon revenues from earnings on reserves, US$275 million; price variations, US$290 million; and parity variation, US$1.9 billion. In the cash concept, the stock of reserves reached US$367.7 billion in January, rising by US$2.7 billion compared with the previous month.
III - External debt
The estimated gross external debt for January 2017 totaled US$316.7 billion, falling by US$3.1 billion compared to the amount estimated for December 2016. The estimated long-term external debt reached US$265.7 billion, increasing by US$345 million, while the short-term debt totaled US$51 billion, decreasing by US$3.4 billion in the same period.
Among the factors underlying the long-term external debt variation in the period, items worth highlighting are the amortizations of US$2 billion in sovereign bonds, disbursements of US$1.3 billion from the financial sector's loans and the amortizations of US$980 million of other sectors' loans. Additionally, the stock grew by US$248 million due to exchange variation, and US$1.7 billion consequent upon the price increase of sovereign bonds. The decline of the short-term foreign debt in the same period is mainly explained by the depreciation of US$3.5 billion in financial sector's loans.