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The hole in offshore accounts is the largest in six years

The hole in offshore accounts is the largest in six years

The current account result was negative in March of this year, at $ 3.97 billion, the central bank reported on Monday 26. This is the worst March result since 2015, when there was a deficit of $ 5.772 billion. In other words, it is the largest hole in six years.

The current account in the balance of payments includes all Brazil’s business abroad, including the trade balance of goods and services, profit transfers, dividends and interest paid by companies, as well as personal transfers between countries.

According to the Central Bank, the result of current transactions was negative in March of this year, at 3.97 billion dollars.

Photo: Marcelo Casal Jr. / Agência Brasil / Estadão

The March number was in her survey Broadcast forecastIts deficit ranges between $ 9 billion and a surplus of $ 3.2 billion.

The Trade Balance was negative at $ 437 million in March, while the Services account was negative at $ 1.057 billion. The primary income account also ran a deficit of $ 2.993 billion. In the case of the financial account, the result was negative by $ 3.919 billion.

In the first quarter of 2021, the total external account gap was $ 15.361 billion. BC’s current estimate is a current account surplus of US $ 2 billion in 2021. The calculation was updated in the most recent Quarterly Inflation Report (RTI).

If achieved, it will be the first result in blue after 14 years. The last time the result was blue occurred in the global commodity boom at the start of this century, when Brazil recorded surpluses for five consecutive years starting in 2003.

Until the end of last year, the central bank projected a new deficit of 19 billion dollars in the external accounts for 2021. But with the increasing increase in commodity prices (basic products, such as oil, grains, and iron ore) produced in Brazil, the monetary authority raised expectations of results by 21 billion US dollars. , To a positive balance of US $ 2 billion.

The investment coverage gap

The negative outcome of the external accounts in March was covered by the entry of direct investments into the country (IDP), which totaled $ 6.86 billion. In the same period last year, the amount was 7.386 billion US dollars.

The total inflows of foreign investments into the productive sector during the first quarter amounted to 17.7 billion US dollars. British Columbia estimates for this year that IDPs are $ 60 billion. This number was updated in the most recent Quarterly Inflation Report (RTI).

Spending abroad by Brazilians is at a lower level in 16 years

Brazilians’ spending abroad totaled $ 313 million in March, still according to the British Columbia agreement, a drop of nearly 50% compared to the same month in 2020, at the start of the epidemic in Brazil.

It was also the lowest number for the month of March since 2005, in 16 years, when total overseas expenditures were $ 260 million.

In the first quarter of this year, Brazilians’ spending abroad was $ 860 million, a decrease of 70.6% compared to the same period in 2020 ($ 2.931 billion).

The sharp drop in spending comes amid restrictions caused by the emerging Coronavirus pandemic, which led to the closure of borders and the suspension of flights, and also led to a higher dollar.

According to data from British Columbia, in March of this year, foreigners spent $ 213 million in Brazil, down from the level recorded in the same month in 2020 ($ 385 million).

In the first three months of this year, the total foreign spending in Brazil reached 693 million US dollars, a decrease of 54.9% compared to the same period in 2020 (1.538 billion US dollars).

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