Brasília – The head of the Economic Department of the Brazilian Central Bank (BC), Túlio Maciel, said that Brazil’s external accounts are in an adjustment flow: the trade balance shows a drop in imports and spending with the services account – international travelling, transportation, equipment renting, insurances, among others – are in decline. An example of this is the decline of expenses by Brazilian travelling abroad.
In July, according to the BC, Brazil registered a deficit in current transactions – purchases and sales of goods and services of the country with the world – of US$ 6.163 billion. In the same period of last year, the result was even higher: US$ 9.263 billion. “The deficit in current transactions in 2014 showed an increase until the end of the year. But, after the adjustments, we already showed then that this would generate a reversal in 2015, which we are seeing right now”, emphasized Maciel.
According to Túlio Maciel, besides the trade balance, it’s possible to see better results in other indicators of external accounts. In terms of funding of the current transactions, he says, the bill is still being paid “mainly by foreign direct investments”. The foreign investments, according to Maciel, constitute the better way of funding the current transactions: currently the foreign investments account for 80 to 90% of the total. In July, Direct Investment in the Country (IDP) was of US$ 5.994, reaching US$ 36.926 billion from January to July.
Concerning the fall, in July, of expenses by Brazilian when travelling abroad, the lowest number in five years to a month of July, with a decline of 30.39% over the same month of last year, he attributed the fall in expenses to the dollar appreciation and the income decline of Brazilians. Expenses by Brazilians abroad were of US$ 1.677 billion last month. Last year, in July, it was of US$ 2.408 billion. From January to July of this year, these expenses totaled US$ 11.617 billion against US$ 14.851 billion in the same period of 2014.
*Translated by Sérgio Kakitani
