External accounts have the lowest deficit for February in 6 years
Negative balance totaled US$ 2.8 billion in the month, lower than the deficit of February 2022, of US$ 4.2 billion
External accounts had a deficit of US$ 2.8 billion in February, the smallest negative balance registered for the month in 6 years. The deficit had been US$ 4.2 billion in February 2022.
The BC (Central Bank) released the External Sector Statistics report this Monday (27.Mar.2023). Here is the full document (268 KB).
The monetary authority monthly calculates current transactions in Brazil, considering the balance of trade (exports and imports), services acquired by Brazilians abroad and income, such as remittances of interest, profits and dividends to other countries.
The trade balance had a smaller surplus compared to February 2022. It totaled US$ 2.5 billion compared to US$ 3.6 billion 1 year earlier. Exports totaled US$ 21.6 billion, while imports were US$ 19.1 billion.
The deficit in the services account totaled US$ 2 billion, a reduction of 27.6% compared to February 2022. freight costs.
Equipment rental expenses were $571 million, up 6.2%. Expenses on international travel were US$ 339 million, a drop of 23.9% compared to 1 year ago.
The deficit in primary income was US$ 3.4 billion in February, with a reduction of 33.5% compared to the negative balance of US$ 5.2 billion in the same month of 2022. Net expenditures on profits and dividends totaled US$ $2.1 billion versus $2.9 billion in February last year.
In 12 months, the deficit in current transactions added up to US$ 54.4 billion in February, which corresponds to 2.78% of GDP (Gross Domestic Product). It was US$ 55.8 billion in January and US$ 46.8 billion in February last year.
DIRECT INVESTMENT IN THE COUNTRY
The IDP (Direct Investment in the Country) totaled US$ 6.5 billion in February 2023. The value exceeds and offsets the negative balance of external accounts in the month. Despite this, the value dropped by 39.8% compared to February 2022.
According to BC, there was a net inflow of US$ 4.9 billion in capital participation and US$ 1.6 billion in intercompany operations.
In 12 months, direct investment in the country added up to US$ 88 billion, or 4.49% of GDP. It was US$92.3 billion in January and US$50.2 billion in February 2022.