Brazil May Trade Surplus Smaller Than Expected

Brazil trade surplus narrowed 22 percent from the previous year to USD 5.98 billion in May 2018, a month sharply impacted by nationwide truckers strikes. The trade surplus came in way below market consensus of USD 7.5 billion.

Exports slumped 2.8 percent year-on-year to USD 19.24 billion in May, mainly due to lower sales of manufactured goods (-21 percent) and semi-manufactured goods (-13.6 percent). Meanwhile, exports of primary goods, of which soybeans, rose 13 percent. Among major trading partners, exports dropped to the US (-27.6 percent), the EU (-6 percent), Argentina (-19.3 percent) and Mexico (-28 percent), while those to China jumped 27.2 percent.

On the other hand, imports jumped 9.3 percent to USD 13.26 billion, boosted by higher purchases of intermediate goods (6.5 percent), consumption goods (5.8 percent), fuels and lubricants (17.8 percent) and capital goods (23.5 percent). Imports rose from the EU (16.3 percent), China (10.6 percent), the US (4.6 percent), South Korea (4.8 percent), Japan (25 percent) and Mexico (32 percent), while those from Argentina declined 12.7 percent.

Considering the first five months of the year, the trade surplus fell to USD 26.16 billion from USD 29.03 billion in the same period of 2017.

Brazil May Trade Surplus Smaller Than Expected

MDIC | Joana Ferreira |
6/1/2018 7:05:44 PM