Brazilian external accounts showed a deficit of US$ 3.5 billion in May 2022. In the same month of last year, the result had been a surplus of US$ 2.5 billion. The numbers result from purchases and sales of goods, services and income transfers between Brazil and other countries.
According to external sector statistics, released today (26) by the Central Bank, in the inter-annual comparison, there was “a reduction of US$ 3.9 billion in the balance of trade of goods and increases of US$ 743 million and US$ 1.4 billion in deficits in services and in primary income, respectively”.
Regarding current transactions observed in the 12 months ended in May, the result was a deficit of US$ 32.9 billion, which corresponds to 1.89% of the Gross Domestic Product (GDP, which is the sum of all the wealth produced in the country ). In the previous month, the value was US$ 26.8 billion (1.57% of GDP); and in May 2021 it was at US$19.1 billion (1.3% of GDP).
According to the monetary authority, the trade balance for goods had a surplus in May 2022, at US$ 3.4 billion, which represents a positive balance of US$ 7.4 billion compared to May 2021.
Taking the balance relative to goods as a cut-out, a total of US$ 30 billion in exports was recorded; and US$ 26.6 billion in imports – “increases of 13.8% and 39.8% compared to May 2021, respectively”, informed the BC.
Services, travel, transport
The service account showed a deficit of US$ 2.4 billion in that month, a value 45.5% higher than that observed in May of last year. International travel recorded net expenses of US$718 million in May 2022, up from US$139 in the same month of 2021.
“On the same comparative basis, and following the trend of recent months, gross travel revenue flows expanded 91.9% to US$373 million, and travel expenses grew 227.3% to US$1.1 billion ”, say the statistics.
According to the BC, net transport expenses totaled US$ 821 million in May 2022, compared to US$ 307 million in May 2021, which represents an increase of 167.6%. Equipment rentals recorded net expenses of US$ 602 million.
Still in relation to the figures for May 2022, the deficit in the primary income account was US$ 4.9 billion, a value 41.2% higher than the one obtained in May 2021.
Profits and dividends
Between May 2021 and May 2022, net income and dividend expenses increased from $2 billion to $4.2 billion “driven by a $1.9 billion increase in gross expenses,” the survey says.
“Net interest expenses totaled US$711 million in May 2022, compared to US$1.5 billion in May 2021,” he added, informing that the reduction in gross interest expenses “was concentrated in operations of companies of the same economic group”.
According to external sector statistics, net inflows in direct investments in the country (FDI) totaled US$ 4.5 billion in May 2022, compared to US$ 2.2 billion in May 2021.
“There were net inflows of US$ 6.2 billion in equity participation and net outflows of US$ 1.8 billion in intercompany operations. In the twelve months ending May 2022, PDI totaled US$60 billion (3.45% of GDP), up from US$57.8 billion (3.38% of GDP) in the previous month and US$47.3 billion (3.22% of GDP) in May 2021”, he details.
Regarding portfolio investments in the domestic market, the survey identified a total of US$ 3.9 billion in net outflows in May 2022, with US$ 3.2 billion in outflows via stocks and investment funds; and US$702 million in debt securities. “In the twelve months ended in May 2022, portfolio investments in the domestic market totaled net inflows of US$ 5 billion”, he added.
international bookings
International reserves increased by US$1.3 billion compared to the previous month, totaling US$346.4 billion in May 2022.
According to the BC, the result is mainly due to price variations and interest income, “which contributed to increase the stock by US$ 463 million and US$ 501 million, respectively”.
