Brazil Posts Smallest Trade Surplus in 3 Years

Brazil's trade surplus narrowed to USD 2.19 billion in January 2019 from USD 2.82 billion in the same month of the previous year and below market expectations of USD 3.4 billion. It was the smallest trade surplus since January of 2016, as imports jumped 15.4 percent year-on-year to USD 16.39 billion and exports rose at a softer 9.1 percent to USD 18.58 billion.

Imports went up 15.4 percent from a year earlier to USD 16.39 billion in January, mainly driven by higher purchases of capital (156.2 percent) and intermediate goods (3.6 percent). On the other hand, imports dropped for fuels and lubricants (-12.5 percent) and consumption goods (-3.5 percent).

Among major trading partners, shipments rose from China (81 percent), Argentina (4.9 percent) and Japan (8.2 percent) while declined from the US (-5.2 percent), ASEAN (-8.8 percent) and the EU (-5.1 percent).

Exports increased 9.1 percent to USD 18.58 billion, mostly due to sales of primary goods (10.1 percent), namely corn (+56.6 percent), raw cotton (+44.5 percent), copper ore (+37.5 percent), soybeans (+37.5 percent), soybean meal (+21.8 percent), and iron ore (+11.4 percent). Also, exports of semi-manufactured products advanced 11.1 percent led by cast iron (+123.7 percent), copper cathodes (+48.8 percent) and cellulose (+42.5 percent). Additionally, sales of manufactured products went up 15.2 percent, boosted by oil extraction, airplane parts (+172.6 percent), planes (+124.8 percent), fuel oil (+101.8 percent) and footwear (+23.0 percent). 

Among major trading partners, sales rose to China (20.8 percent), ASEAN countries (59.2 percent), the US (2.1 percent), but went down to the EU (-5.6 percent) and Argentina (-43.7 percent).

Brazil  Posts Smallest Trade Surplus in 3 Years

MDIC | Stefanie Moya |
2/1/2019 6:36:59 PM