Brazil Trade Surplus Hits Record High In May
Brazil posted a USD 7,661 million trade surplus in May of 2017, 19 percent higher than a USD 6,437 million surplus a year earlier and in line with market expectations. It is the highest surplus ever, amid record harvest of soy.
Exports jumped 12.6 percent year-on-year to USD 19,792 million, boosted by sales of semimanufactured products (16.4 percent), namely iron and steel (63.7 percent), sugar (46 percent), pulp (29 percent), sawn wood (22.5 percent) and leather (3.5 percent); basic products including corn (922.3 percent), crude oil (94.2 percent), copper (62.5 percent), iron ore (17.5 percent), coffee beans (2 percent) and soybeans (7.7 percent). In contrast, shipments of manufactured products declined 1.2 percent, namely electric motors and generators (-22.5 percent) and plastic polymers (-4.4 percent).
Exports rose to Central America and the Caribbean (36.8 percent), Africa (23.9 percent), the US (21.6 percent), the Middle East (18.2 percent), Mercosul (16.8 percent) and Asia (16.2 percent out of which those to China gained 10.2 percent).
Imports increased at a slower 9 percent to USD 12,131 million. Purchases rose for fuels and lubricants (30.2 percent), consumer goods (20.2 percent) and intermediate goods (1.5 percent) but fell for capital goods (-20.7 percent).
Considering the first five months of the year, exports went up 18.5 percent to USD 87.932 billion. Higher prices for iron ore (94.1 percent), oil (68 percent), soy (8 percent), cargo vehicles (5 percent) and automobiles (1.8 percent) were the main drivers of the increase while in volume terms, sales declined 0.8 percent. Imports increased 8.4 percent to USD 58.9 billion, bringing the country’s trade surplus to USD 29 billion, the highest on record for the period.
Joana Taborda | joana.taborda@tradingeconomics.com
6/1/2017 11:13:02 PM