I - Balance of payments - August 2016
In August, the current account posted a deficit of US$579 million, accumulating a negative balance of US$25.8 billion over the last twelve months, equivalent to 1.46% of the GDP. In the financial account, net inflows exceeded net outflows by US$116 million, highlighting net inflows of US$7.2 billion in direct investments into Brazil and a decrease of US$5.7 billion in portfolio investment - liabilities.
The service account registered net expenditures of US$2.2 billion in the month, falling by 16.1% compared with the August 2015 result, due to respective increases of 16.7% and 0.3% under gross revenues and expenditures. In the same comparison basis, net expenditures on intellectual property services, equipment rental and telecommunication, computer and information fell by 18.7%, 10.7% and 5.3%, respectively. The item international travel posted net expenditures of US$690 million, falling by 16.5% in the same comparison basis. Revenues on travel grew by US$166 million, increasing by 38.1%, due to spending by foreign tourists during the Olympics in Rio de Janeiro, while Brazilian tourists' expenditures abroad grew by 2.3%.
Primary income net expenditures totaled US$2.5 billion in August 2016, falling by 2.6% compared with the same period of the previous year. Net expenditures on profits and dividends reached US$1.8 billion, due to the fall of 34.1% under revenues and relative stability under expenditures. Net expenditures on interests reached US$770 million, dropping by 26.8% when compared with the same month of the previous year.
The secondary income account posted net inflows of US$214 million in August 2016. Net revenues related to personal transfers reached US$84 million in the month, 26.3% lower than in the same period in 2015.
Net direct investments abroad reached US$306 million in the month, mainly focused on equity capital participation, remaining at a similar level of that observed in August 2015.
Net inflows of direct investments into Brazil totaled US$7.2 billion, of which US$5.5 billion from equity capital participation, including net inflows of US$803 million from reinvested earnings, and US$1.7 billion from intercompany transactions. Over twelve months, net inflows of direct investment into Brazil totaled US$74.0 billion, equivalent to 4.17% of GDP.
Portfolio investment - liabilities posted net outflows of US$5.7 billion in August, comprising net outflows of US$1.6 billion in stocks and US$3.8 billion in fixed-income securities traded on the domestic market, among others.
Other investment - assets rose by US$3.4 billion, comprising a concession of US$4.0 billion in trade credits and advances, a decline of US$1.1 billion in deposits held by Brazilian banks abroad, and a growth of US$536 million in deposits held by nonfinancial companies.
Other investment - liabilities posted net inflows of US$3.1 billion. Trade credits and advances grew by US$2.5 billion, mainly in short-term transactions. Net inflows from long-term loans totaled US$1.7 billion, while net amortizations of short-term loans reached US$1.1 billion in the month.
II - International reserves
International reserves according to the liquidity concept totaled US$376.9 billion, falling by US$609 million as compared with the previous month. The stock of repurchase lines reached US$7.4 billion, falling by US$810 million when compared with the July 2016 position. In August, income regarding earnings on reserves totaled US$258 million, while price and parity variations contributed towards reducing the stock by US$498 million and US$511 million, respectively. In the cash concept, the stock of reserves closed at US$369.5 billion in August, increasing by US$201 million when compared with July.
III - External debt
The estimated gross external debt for August 2016 totaled US$338.8 billion, increasing by US$2.4 billion when compared with the amount estimated for June 2016. The estimated long-term external debt reached US$275 billion, increasing by US$2.3 billion, whereas the short-term debt totaled US$63.8 billion, remaining practically stable.
Among the factors underlying the long-term external debt variation over the period, items worth highlighting are the amortizations of loans by the financial sector, US$2 billion; financial sector's disbursements of loans, US$2.7 billion; and debt securities issued by the government, US$1.5 billion.