Brazil June Trade Surplus Below Expectations


Brazil trade surplus narrowed 18 percent to USD 5.88 billion in June of 2018 from USD 7.2 billion in the corresponding month of the previous year and below market expectations of a USD 6.3 billion surplus. Exports rebounded from a fall in May but imports advanced at a higher 13.7 percent.

Exports rose 2.1 percent year-on-year to USD 20.20 billion in June, mainly due to higher sales of manufactured goods (7.6 percent), particularly airplanes (43.3 percent) and aluminium (56.4 percent). On the other hand, despite the increase in soybeans (25.2 percent), shipments decreased for primary goods (-0.3 percent), namely crude oil (-38 percent) and chicken meat (-41.9 percent). Also, declines were seen for semi-manufactured goods (-2.7 percent), mainly due to lower sales of sugar (-53.6 percent). Among major trading partners, exports increased to China (15.1 percent) and the US (17.2 percent). Meanwhile, sales went down to Argentina (-0.2 percent).

Imports surged 13.7 percent year-on-year to USD 14.32 billion, boosted by higher purchases of intermediate goods (13.2 percent); consumption goods (20.8 percent) and capital goods (33.8 percent). On the other hand, purchases of fuels and lubricants decreased 7.7 percent in June. Imports rose from China (21.7 percent); Argentina (23.5 percent) and Mexico (30.5 percent); while those from the US (-5.3 percent) declined.

Considering the first half of the year, the trade surplus narrowed 17 percent to USD 30.1 billion from USD 36.2 billion in the same period of 2017.

Brazil June Trade Surplus Below Expectations


MDIC | Agna Gabriel | agna.gabriel@tradingeconomics.com
7/4/2018 11:31:09 AM