Brazilian external accounts registered a deficit of US$ 2.8 billion in March. In March of last year, there was also a deficit of US$ 5.2 billion in accounts representing purchases and sales of goods, services and income transfers with other countries.
Published today (25) by the Central Bank, the external sector statistics for the month of March show that, in the inter-annual comparison, “there was an increase of US$ 6.6 billion in the balance of trade in goods, partially offset by increases of US$ 6.6 billion. $2.8 billion in the primary income deficit and $1.1 billion in the services deficit.
Also according to the monetary authority, the deficit in current transactions in the 12 months ended in March was US$ 23.5 billion, a value that corresponds to 1.41% of the Gross Domestic Product (GDP, the sum of goods and services produced in the country).
In February, the deficit was US$ 26 billion (1.59% of GDP); and in March 2021 it was at US$ 22.8 billion (1.62% of GDP).
With regard to the trade balance of goods, the Central Bank registered a surplus of US$ 6.1 billion in March. In the same month of 2021, the balance was negative by US$ 514 million.
According to the BC, exports of goods totaled US$ 29.7 billion, while imports totaled US$ 23.6 billion. These values represent, respectively, an increase of 21.1% and a decrease of 5.8% compared to March 2021.
Imports under the Special Customs Regime for Goods for Research and Exploitation of Oil and Natural Gas Reservoirs (Repetro) totaled US$153 million in March (US$6.5 billion in March 2021).
“Excluding Repetro operations, the year-on-year comparison of imports registered an increase of 26.3%”, said the BC.
Regarding the services account, the deficit registered in March increased by 106.8% compared to the same month in 2021, reaching US$ 2.2 billion. The international travel account recorded net expenses of US$648 million in the month, compared to US$100 million in March 2021.
“On the same comparative basis, and following the trend of recent months, gross travel revenue flows expanded 112.2% to US$453 million, and travel expenses grew 251.8% to US$1.1 billion ”, details the monetary authority.
Also according to external sector statistics, net transport expenses totaled US$ 428 million in March 2022, compared to US$ 253 million in March 2021. Equipment rental recorded net expenses of US$ 651 million, a figure that represents an increase of 14.8%, based on March 2021.
The primary income account had a deficit 68.5% higher than that recorded in March last year, totaling US$ 7 billion. Net income and dividend expenses increased to $5 billion from $2.8 billion in March 2021, “driven by a $2 billion increase in gross expenses.”
According to the BC, net interest expenses totaled US$ 2 billion in March 2022. In the same month of 2021, these expenses were US$ 1.3 billion.
In March 2022, US$ 7.6 billion entered the country through direct investments (IDP), a value higher than the US$ 7 billion in net inflows for this type of investment, recorded in March 2021.
“There were net inflows of US$ 6.2 billion in capital participation and US$ 1.4 billion in intercompany operations”, details the monetary authority. According to the BC, in the 12-month period ending in March, the IDP totaled US$ 51.2 billion (3.08% of GDP), compared to US$ 50.7 billion (3.11% of GDP) in the previous month; and the US$44 billion (3.12% of GDP) in March 2021.
“Portfolio investments in the domestic market totaled net outflows of $5.5 billion in March, comprised of outflows of $6.6 billion in debt securities and inflows of $1.1 billion in equities and investment funds. . In the 12 months ending in March, portfolio investments in the domestic market added up to net inflows of US$ 19.8 billion,” said the BC.
The country’s international reserves decreased by US$ 4.6 billion from February to March, reaching US$ 353.2 billion.
According to the BC, the result was mainly due to “variations in parities and prices”. Interest income totaled US$ 481 million in the month.
Article amended, in the third paragraph, at 3:30 pm to correct a percentage of the current account deficit in relation to GDP.
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