Brazil Trade Surplus Narrows as Exports Fall Sharply

Brazil's trade surplus narrowed to USD 1.21 billion in October 2019 from USD 5.79 billion in the same month last year and slightly below market expectations of USD 1.25 billion.
MDIC | Joana Ferreira | 11/1/2019 6:49:00 PM
Exports plunged 16.7 percent from a year earlier to USD 18.23 billion in October, amid lower sales of primary goods (-11.4 percent) such as iron ore (-5.4 percent), soybeans (-14.4 percent) and crude oil (-49.4 percent). Also, shipments of semi-manufactured products tumbled 17.1 percent, on the back of cellulose (-11.7 percent) and iron and steel (-61.2 percent); and those of manufactured products slumped 23.2 percent due to aircraft (-14.7 percent), fuel oils (-15.1 percent), aluminum oxides and hydroxides (-22.9 percent), passenger vehicles (-39.3 percent), and engines for vehicles and parts (-14.2 percent).

Among major trading partners, exports went down to China (-6.3 percent), the US (-22.2 percent), Argentina (-32.2 percent), and the EU (-32.3 percent).

Imports rose 5.7 percent to USD 17.03 billion, boosted by purchases of capital (12.3 percent) and intermediate goods (14.3 percent). On the other hand, imports dropped for consumption goods (-4.8 percent); and fuels & lubricants (-25.9 percent).

Among major trading partners, imports advanced from China (11.3 percent), ASEAN (10.8 percent), the US (11 percent), and Argentina (3.7 percent), but fell from Mexico (-18.7 percent) and the EU (-0.2 percent).

Considering January to October, the country's trade surplus shrank 26.7 percent to USD 34.82 billion.

Brazil Trade Surplus Narrows as Exports Fall Sharply