Brazil Trade Deficit Widens in October

Brazilian trade gap increased to USD 1.18 billion in October of 2014 from a USD 0.22 billion shortfall a year earlier, as lower prices for key exports keep dragging sales down.

In October, exports shrank 19.7 percent year-on-year to USD 18.33 billion, following a 6.6 percent drop in September. Yet, in volume terms, exports of coffee hit the highest in four years: 3.09 million 60-kg bags compared with 2.92 million a year earlier. Volume sales of orange juice, crude oil, and sugar raw increased 73.2 percent, 51.5 percent and 1.5 percent respectively over a year earlier.

Meanwhile, imports decreased 15.4 percent to USD 19.5 billion. 

On a monthly basis, working-day adjusted exports fell for the fourth consecutive month by 10.6 percent and imports decreased 9.2 percent. 

Year-to-date, the country’s trade deficit widened to USD 1.87 billion compared with a USD 1.99 billion gap a year earlier as exports and imports decreased both by 4.2 percent. The quantity of iron ore sold rose 5.8 percent, while its value decreased 14.9 percent. Exports of chicken rose 3.8 percent in volume terms but its value dropped 1.7 percent and shipments of maize grain fell in both value and volume. Sales to the United States increased 8.3 percent year-on-year from January to October but exports to China fell 6.8 percent; those to Latin America and Caribe shrank 7.5 percent and sales to the European Union went down 20.2 percent. Meanwhile, car imports recorded the highest decrease (-15.5 percent), followed by oil (-6.5 percent). 

Brazil Trade Deficit Widens in October

Joana Taborda |
11/4/2014 11:44:46 AM