Home Agribusiness Brazil’s Trade Surplus Has Best October in the Series, But Below Expectations

Brazil’s Trade Surplus Has Best October in the Series, But Below Expectations

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Brazil’s trade balance registered a surplus of US $6,121 billion in October, the best result for the month in the historic series that began in 1989 in the face of a surge in exports, said the Ministry of Development, Industry and Foreign Trade on Thursday -market.

In the month, exports and imports rose in the same way, with a 12.4 percent increase over the daily average, contrary to the tendency seen so far for weaker exports.

Product sales reached $22.226 billion in the period, while purchases totaled $16.105 billion.

In the accumulated from January to October, the positive balance of trade reached $47.721 billion dollars, a decrease of 18.4 percent over the same period last year.

The decrease comes in the wake of stronger imports, responding to an improvement in economic activity. In the 10 months of 2019, they rose 20.6 percent, while exports were up 8 percent.

The MDIC forecast so far was that the surplus would reach $50 billion in 2018, up from $67 billion in 2017. But economists heard by the Central Bank in the Focus survey see a surplus of 56 billion reais year.

At a news conference, MDIC‘s director of statistics and export support, Herlon Brandao, said the government kept its estimate even with the balance over the year already close to 50 billion.

HIGHLIGHTS

In October, exports rose in all categories, especially commodities, up 26 percent from the same month last year.

The highlights in the group were crude oil exports (+126.8 percent to $2.9 billion) and soybeans (+114.2 percent to $2.1 billion).

Sales of manufactured goods, in turn, rose 5.5 percent and semi manufactured goods, 3.0 percent.

Imports also grew broadly, driven by purchases of fuels and lubricants, with expansion of 24.2 percent.

Next, intermediate goods (+11.2 percent), capital goods (+11.1 percent) and consumer goods (+7.8 percent) appear.

ARGENTINA

Exports to the neighboring country, the third largest buyer of Brazilian products, fell 40.2 percent last month compared with October last year, amid changes in monetary policy in the Mercosur partner following a billion dollar agreement with the International Monetary Fund to stop the fall of the Argentine peso.

Brazil’s main destination for automobiles exported by Brazil, Argentina spent 42.7 percent less to buy Brazilian vehicles in October, on the same basis of comparison.