Trade balance surplus is lowest for October since 2015 in Brazil

Published Nov 3, 2021

Tridge summary

In October, Brazil's trade surplus hit a six-year low, dropping by 54.5% from the previous year to $1.567 billion, despite total exports reaching a record $22.52 billion, a 27.6% increase from October 2020. This decrease was primarily due to a significant rise in imports, which grew by 54.9% year-over-year to $20.516 billion. The increase in imports was led by purchases of fuel, fertilizers, and medications, largely due to the rising international oil price and economic recovery. Additionally, the suspension of beef purchases by China and crop failures led to a decrease in agricultural exports. Despite these challenges, the accumulated trade surplus for the first ten months of the year was a record $58.579 billion, marking a 29.6% increase from the same period in 2020. The government has reduced its surplus forecast for the year to $70.9 billion, which is still higher than market projections of $70.1 billion.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The growth of imports and the deceleration of exports of some products caused the trade balance surplus to fall to the lowest level in six years in October. Last month, the country exported US$ 2.004 billion more than it imported. This was the worst result for the month since 2015, when the surplus had reached US$ 1.567 billion. In relation to October of last year (positive result of US$ 4.404 billion), the drop reached 54.5% according to the daily average criterion. The balance decreased, even with total exports breaking a record. Last month, exports totaled US$ 22.52 billion, an increase of 27.6% over October 2020 according to the daily average criterion. Imports, however, grew more and totaled US$ 20.516 billion, up 54.9% in the same comparison. Despite the rise in commodity prices, exports slowed down. Last month, the volume of shipped goods rose only 0.7% compared to October 2020. Prices rose, on average, 26.3% in the same comparison. due to frost, exports of the product ...

Source: Odocumento