External accounts post $6.9 billion deficit in February

The balance of Brazil's foreign accounts in February was reported at a negative $6.9 billion, bringing the 12-month deficit to $89.9 billion, or 4.22% of the country's GDP. Data were released Tuesday (Mar 24) by the Central Bank. Calculations are based on income, costs from services, in addition to imports and exports registered in the balance of trade.

“This [$6.9 billion] deficit is the smallest for February since 2013, when $6,6 billion was registered,” said Fernando Rocha, assistant head of the economic department at the Central Bank. He goes on to report that the deficit for March this year is estimated at $5.5 billion, “which will also represent a reduction from March last year.”

According to data from the Central Bank, the country's financial account saw net revenues adding up to $7.6 billion. Most noteworthy are foreign direct investments ($2.8 billion), and foreign portfolio investment ($2.2 billion). According to the banking institution, services closed out February at a negative 2.8 billion—down 18.5% from February 2014. In the same comparison, net transportation costs fell 11.8%, totaling $607 million.

International travel saw net costs at $970 million—a decline of 26.7% from the same month last year. BC further reports that the performance was influenced by a 22.9% reduction in the money spent by Brazilian tourists overseas. Net expenses for equipment leases rose 7%, reaching $1.6 billion. Most notable was the plunge observed in net costs for royalties and licenses (38.9%) and IT (26%).

Translated by Fabrício Ferreira