The external accounts had a negative balance of US$ 8.1 billion in January 2022, the Central Bank (BC) reported today (23). As a result, Brazil has, in 12 months, accumulated a deficit of US$ 27.7 billion in current transactions, which represents 1.71% of the Gross Domestic Product (GDP, the sum of all goods and services produced in the country), compared to US$27.9 billion (1.74% of GDP) in the previous month and US$21.9 billion (1.54% of GDP) in January 2021. Current transactions are the purchases and sales of goods and services and income transfers with other countries.
The BC said that in January 2022, the deficit in the primary income account (profits and dividends, interest payments and salaries) increased by 7.8% compared to January 2021 and totaled US$5.4 billion. Net income and dividend expenses increased to US$2.5 billion from US$1.1 billion in January 2021. The increase in the profit deficit was mainly due to a US$1.1 billion increase in expenses, to $3.8 billion in January 2022, while revenues decreased by $322 million on the same comparative basis. Net interest expenses totaled US$ 2.9 billion in the month, down 25.5% compared to January 2021, with an increase in revenues and a reduction in expenses.
investments
The BC also reported that, in January, Direct Investment in the Country (IDP) totaled US$ 4.7 billion in January 2022, compared to US$ 3.5 billion in January 2021. Intercompany operations (such as loans from the parent company abroad for the branch in Brazil) registered net inflows of US$ 307 million in the month.
In the 12 months ending in January, the IDP totaled net inflows of US$ 47.7 billion (2.94% of GDP), compared to US$ 46.4 billion (2.89% of GDP) in the previous month. In January, net inflows totaled US$ 38.4 billion (2.70% of GDP)
In January 2022, direct investments abroad (FDI) showed net investments of US$ 1.9 billion, of which US$ 1.3 billion in equity participation – profit reinvestment. In the 12 months ending in January 2022, FDI totaled net investments abroad of US$ 18.7 billion.
Trade balance
According to the BC, the trade balance of goods registered a deficit of US$ 1.5 billion in January 2022, compared to a negative balance of US$ 2.6 billion in January 2021. Exports of goods totaled US$ 19.8 billion and imports of goods, US$21.3 billion, increases of 31.3% and 20.4% compared to January 2021.
Imports under Repetro (special customs regime) totaled US$41 million in January 2022 (US$1.7 billion in January 2021). Repetro is the special customs regime that suspends the collection of federal, export and import taxes on goods intended for exploration and mining activities in oil and natural gas deposits, mainly exploration platforms.
services
The deficit in the services account (international travel, transportation, equipment rental and insurance, among others) totaled US$1.5 billion in January 2022, an increase of 51.2% compared to January 2021.
The international travel account recorded net expenses (income from foreigners in Brazil lower than spending by Brazilians abroad) of US$ 269 million in the month, compared to US$ 39 million in January 2021.
“On the same basis of comparison, the growth of gross travel revenue flows, 56.8%, totaling US$ 421 million, and travel expenses, 124.3%, totaling US$ 690 million. Net transport expenses totaled US$ 542 million in January 2022, compared to US$ 351 million in January 2021, following the trend of expansion of the foreign trade flow”, said the BC.
Projection
For the month of February 2022, the estimate for the result in current transactions is a deficit of US$ 2.6 billion, while that of IDP is a net inflow of US$ 10 billion.
