The result of current transactions was negative in August this year, at US$ 778 million, the Central Bank (BC) reported this Monday, 25th. This is the best performance for August since 2020, when the balance was positive at US$874.4 million. The negative record for the month was last year, R$7.016 billion. In July, the result was a deficit of US$ 3.605 billion.
The current account number in August was less in deficit than the median of the survey carried out by Projeções Broadcast, which pointed to a deficit of US$ 2.100 billion. The range went from a deficit of US$5.952 billion to a deficit of US$227 million.
According to the Central Bank’s methodology, the trade balance recorded a positive balance of US$7.618 billion in August, while the services account was negative at US$2.878 billion. The primary income account was also in deficit, at US$5.642 billion. In the case of the financial account, the result was negative at US$ 1.243 billion.
Accumulated
In the year up to August, the current account had a deficit of US$19.459 billion. In 12 months, the current account balance is negative at US$45.336 billion, which represents 2.21% of the Gross Domestic Product (GDP). This is the smallest deficit as a proportion of GDP since March last year, when it was also 2.21%
The BC’s current estimate is a current account deficit of US$45 billion in 2023, according to the June Quarterly Inflation Report (RTI).
Profits and dividends
The profits and dividends item in the balance of payments showed a negative balance of US$3.891 billion in August, reported the Central Bank.
The net outflow is lower than the US$4.897 billion that left Brazil in the same month of 2022, already discounting inflows. The BC also reported that external interest expenses totaled US$ 1.781 billion in August, compared to US$ 1.259 billion in the same month last year.
In the year up to August, the balance of profits and dividends is negative at US$30.270 billion and interest expenses are US$18.077 billion.
International travel
The international travel account recorded a deficit of US$615 million in August, the Central Bank reported. The value reflects the difference between what Brazilians spent abroad and what foreigners spent in Brazil during the period. In August 2022, the deficit in this account was US$620 million.
The performance of the international travel account last month was determined by Brazilian expenses abroad, which totaled US$1.272 billion. Spending by foreigners on trips to Brazil was US$657 million in August.
In 2023, the net balance of the travel account was negative at US$5.284 billion. In the same period last year, the deficit in this account was US$4.872 billion.
External debt
The Central Bank’s estimate for Brazilian external debt in August is US$328.983 billion. According to the institution, the year 2022 ended with a debt of US$319.634 billion.
Long-term external debt reached US$254.938 billion last month, while the short-term stock stood at US$74.045 billion.
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