Brazil Trade Gap Narrows in June

Brazil's trade surplus narrowed to USD 5.02 billion in June 2019 from USD 5.88 billion in the same month of the previous year and below market consensus of a USD 5.4 billion surplus. Exports fell 10.3 percent year-on-year and imports dropped at a softer 9.1 percent.
MDIC | Stefanie Moya | 7/1/2019 6:40:53 PM
Exports declined 10.3 percent from a year earlier to USD 18.05 billion in June 2019, mainly due to lower sales of manufactured goods (-16 percent), in particular airplanes (-58.7 percent), autoparts (-32.4 percent), iron & steel products (-31 percent), motorvehicles & parts (-27.6 percent), cargo vehicles (-21.4 percent) and light vehicles (-18.4 percent) 
Additionally, sales of semi-manufactured good dropped 15.7 percent, of which iron & steel (-35.5 percent); hides & skins (-35.1 percent); and raw zinc (-24.2 percent). On the other hand, exports of basic products rose 0.1 percent, driven by grain (947 percent), beef (89 percent) and iron ore (24.6 percent). 

Among major trading partners, exports fell to the US (-12.2 percent), the EU (-17.8 percent), China (-4.1 percent) and Argentina (-44 percent), but increased to ASEAN countries (34.3 percent).

Imports went down 9.1 percent to USD 13.03 billion, mostly due to lower purchases of consumption (-20.5 percent); intermediate (-9.8 percent); and capital goods (-0.2 percent). Meanwhile, purchases of fuels & lubricants advanced 2.4 percent. 

Among major trading partners, imports dropped from China (-3.7 percent), the US (-5.7 percent), ASEAN countries (-4.9 percent), Argentina (-19.7 percent) and the EU (-18.5 percent). 

Considering the first six months of 2019, the country recorded a USD 27.13 billion trade surplus. 

Brazil Trade Gap Narrows in June