The country’s external accounts had a negative balance in November, reaching US$3.060 billion, the Central Bank (BC) reported this Monday (23). In the same month of 2023, the deficit was US$3 million in current transactions, which are purchases and sales of goods and services and income transfers with other countries.
The worsening in the interannual comparison is the result of the US$ 1.7 billion drop in the trade surplus, mainly due to the increase in imports. Also contributing to the negative result in current transactions were deficits in services and primary income (interest payments and company profits and dividends), which increased by US$922 million and US$603 million, respectively. The surplus in secondary income increased by US$ 140 million.
In the 12 months ending in November, the current account deficit totaled US$52.417 billion, 2.37% of the Gross Domestic Product (GDP, the sum of goods and services produced in the country), compared to a negative balance of US$49.360 billion ( 2.22% of GDP) last month. In relation to the equivalent period ending in November 2023, the increase in the deficit was greater, when the result in 12 months was negative at US$ 25.844 billion (1.19% of GDP).
According to the BC, current transactions have a very robust scenario and were showing a tendency to reduce deficits over 12 months, which was reversed as of March this year. Even so, the external deficit is low by the standards of the Brazilian economy and is financed by long-term capital, mainly direct investments in the country, which have good quality flows and a record stock of US$ 1.4 trillion.
From January to November, the current account deficit was US$46.830 billion, compared to a negative balance of US$18.929 billion in the same period in 2023.
Trade balance and services
Exports of goods totaled US$ 28.199 billion in November, an increase of 0.4% compared to the same month in 2023. Meanwhile, imports totaled US$ 21.872 billion, an increase of 8.9% compared to November 2023. last year.
With the results of exports and imports, the trade balance closed with a surplus of US$6.327 billion last month, compared to the positive balance of US$7.999 billion in November 2023.
The deficit in the services account – international travel, transportation, equipment rental and insurance, among others – totaled US$4.664 billion in November, compared to US$3.742 billion in the same month of 2023, growth of 24.6%.
According to the BC, there is growth in the services trade chain, with account diversification. In the interannual comparison, one of the biggest increases, of 90.6%, was in the deficit in intellectual property services, linked to streaming services, totaling US$641 million. Telecommunications, computing and information services, also driven by operations via digital platforms, reached US$802 million.
Another highlight is net transport expenses, which grew 63.3%, totaling US$ 1.523 billion, as a result of increases in trade flow and freight prices.
In the case of international travel, in November, the deficit in the account closed with an increase of 4.5%, reaching US$ 550 million, the result of US$ 616 million in revenues (which are the expenses of foreigners traveling to Brazil) and of US$ 1.166 billion in Brazilian expenses abroad.
Year-to-date, travel revenue – from tourist spending in the country – reached US$6.620 billion, the record for the historical series started in 1995.
Lace
In November 2024, the deficit in primary income – profits and dividends, interest payments and salaries – reached US$4.974 billion, 13.8% above the figure recorded in November last year, of US$4.371 billion. Normally, this account is in deficit, since there are more investments from foreigners in Brazil – and they remit profits outside the country – than from Brazilians abroad.
Net interest expenses totaled US$1.621 billion in November, US$533 million higher than the result of November 2023, an increase concentrated in intercompany operations. In the case of profits and dividends associated with direct and portfolio investments, there was a deficit of US$3.395 billion in November, slightly higher than the US$3.324 billion recorded in the same month of 2023.
The secondary income account – generated in one economy and distributed to another, as donations and dollar remittances, without counterpart services or goods – had a positive result of US$251 million last month, compared to a surplus of US$111 million in November 2023.
Financing
Net inflows in direct investments in the country (IDP) rose year-on-year. The IDP totaled US$6.956 billion in November, compared to US$6.668 billion in the same period of 2023, the result of net inflows of US$6.892 billion in capital participation and net withdrawals of US$926 million in intercompany operations.
The IDP accumulated in 12 months totaled US$ 66.313 billion (3% of GDP) in November, compared to US$ 66.026 billion (2.97% of GDP) in the previous month and US$ 63.955 billion (2.95% of GDP) in period ending in November 2023.
When the country records a negative balance in current transactions, it needs to cover the deficit with investments or loans abroad. The best form of financing the negative balance is the IDP, because the resources are invested in the productive sector and tend to be long-term investments.
In the case of portfolio investments in the domestic market, there was a net inflow of US$4.999 billion in November, made up of net income of US$5.522 billion in debt securities and net outflows of US$532 million in shares and investment funds. In the 12 months ended in November, portfolio investments in the domestic market totaled net inflows of US$8.2 billion.
The stock of international reserves reached US$363.003 billion in November, an increase of US$3.093 billion compared to the previous month.
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