Brazil Posts Smallest Trade Surplus for July since 2014


Brazil's trade surplus decreased to USD 2.29 billion in July 2019 from USD 3.87 billion in the same month of the previous year and below market expectations of a USD 3.8 billion surplus. It is the smallest trade surplus recorded for a July month since 2014, as exports fell much faster than imports.

Exports dipped 11 percent from a year earlier to USD 20.05 billion in July 2019, dragged down by weaker sales of primary goods (-13 percent), mostly soybeans (-31.6 percent); crude oil (-59.4 percent); chicken meat (-8.6 percent); soybean meal (-25.7 percent) and beef (-6.2 percent). Also, shipments fell for manufactured products (-8.3 percent), namely passenger vehicles (-4.4 percent); parts (-12.3 percent); engine parts and aviation turbines (-43.3 percent); cargo vehicles (-30.7 percent) and non-frozen orange juice (-6.8 percent). Sales of semi-manufactured products dropped 0.2 percent, of which pulp (-8.9 percent).

Among major trading partners, exports went down to China (-12.8 percent), ASEAN countries (-48.8 percent), the EU (-16.2 percent) and Argentina (-27.9 percent), but rose significantly to the US (10.7 percent).

Imports declined at a slower 4.8 percent to USD 17.76 billion, mainly due to lower purchases of capital goods (-50.9 percent) and fuels & lubricants (-3.1 percent). In contrast, purchases of intermediate (4.6 percent) and consumption goods (5.6 percent) grew.

Among major trading partners, imports shrank from China (-34.5 percent) and Argentina (-4.6 percent), while they increased from the EU (6.6 percent) and the US (25.2 percent).

Considering the first seven months of 2019, the country's trade surplus narrowed to USD 28.37 billion from USD 33.89 billion in the same period of 2018.


Brazil Posts Smallest Trade Surplus for July since 2014


MDIC | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
8/2/2019 8:37:24 AM