Brazil balance of trade sees $6.06 bi in May

This is the month’s third best performance in this time series

Published on 03/06/2019 - 18:25 By Wellton Máximo - Brasília

After two months on the wane, the surplus in Brazil’s trade of balance once again saw an increase in May. Last month, the country exported $6.42 billion more than it imported—up 5.8 percent from $6.07 billion in May 2018.

This is the month’s third best result for the current time series, following May 2017’s $7.66 bi and May 2016’s $5.43. The outcome brings the trade of balance—the gap between the country’s total imports and exports—to $22.80 billion for the first five months of 2019—down 5.9 percent from the same period last year.

Last month, exports added up to $21.394 billion, up 5.6 percent from May 2018 as per the daily average criterion. Sales of manufactured goods went up 29.5 percent in the same comparison, with gasoline (R$0 to R$123 million), fuel oils (197.3%), iron and steel laminated plane goods (168%), and engine and airplane propeller parts (151.8%) atop the list.

Exports of semi-manufactured goods went up 15.4 percent from the same month last year, with cast iron (92.3%), semi-manufactured iron or steel goods (73%), and crude soybean oil (68.6%) chief among the items reported to have grown. Despite the beginning of harvests, basic goods slipped 3.9 percent, pulled down mostly by a reduction in exports of copper ore (-32.3%), soybeans (-30.3%), and soybean meal (21%).

Imports

Imports totaled $14.97 billion, up 7.8 percent from May last year under the daily average criterion. Fuels and lubricants also increased 27.5 percent, influenced by the appreciation of oil in the international market during most of the month.

Imports of capital goods (machinery and equipment used in production), in turn, surged 16.4 percent. Intermediary products increased 6.4 percent. Imports of consumption goods were the only to drop (6.5%), driven mostly by hikes in the dollar last month.

After the country’s balance of trade closed out 2018 at $58.95 billion—the second highest result in history—the market estimates a lower surplus in 2019, brought about by a lower-than-expected economic recovery.

As per data from the Focus readout—a weekly survey on financial institutions published by the Brazilian Central Bank—market analysts forecast a $50.5 billion surplus this year, compared to $50.1 billion predicted by the Ministry of the Economy.

Translation: Fabrício Ferreira -  Edition: Nádia Franco / Augusto Queiroz

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