Brasilia – The current transactions deficit (purchases and sales of goods and services between Brazil and the rest of the world) of US$ 81.374 billion in 2013 is the greatest in the Brazilian Central Bank’s (BC) recorded history, started in 1947. The deficit represents 3.66% of the Gross Domestic Product (GDP), worst result since 2001 (4.19%). The information was released this Friday (24) by the BC.
According to the deputy head of the BC’s Economic Department, Fernando Rocha, the result was affected by the reduction of the trade balance surplus. In 2013, the trade surplus was of US$ 2.558 billion, result much lower than in 2012 (US$ 19.395 billion).
Rocha also mentioned the increase in Brazilian tourist spending in international travels, which was a record breaking US$ 25.342 billion in 2013. For him, the raise in Brazilians’ income contributed to the increase in travel expenses, even with the high dollar exchange rates.
Companies’ spending with equipment rental also contributed to the massive deficit, which added up to US$ 19.06 billion last year. Rocha said that the figure is “related to the increase in investments in the Brazilian economy.”
For 2014, Rocha believes that the current transactions deficit will be lower, due to a greater growth in the global economy, which will lead to an increase in the demand for Brazilian products. On top of that, with the high dollar exchange rates, exports may increase even more. The BC’s forecast for the current transactions deficit this year is of US$ 78 billion, that is, 3.53% of the GDP.
Foreign direct investments (FDI) in Brazil were insufficient to finance the deficit in 2013. FDI totaled US$ 64.045 billion, which corresponds to 2.88% of the GDP. The result is lower than in 2012, when FDI reached US$ 65.272 billion (2.9% of the GDP).
Rocha declared, however, that the current transactions deficit “was mostly financed by foreign direct investments, which are long-term assets.”
*Translated by Sílvia Lindsey
