Brazil’s Trade Surplus Falls 64% in 2008 Due to Cheap Dollar

Imported machinery in Brazil Brazil's balance of trade (exports minus imports) ran a surplus of US$ 260 million in the third week this month, as a result of US$ 3.279 billion in exports and US$ 3.019 billion in imports. The surpluses recorded in the two other weeks this month were higher (US$ 842 million and US$ 319 million).

In the month of April, so far, the trade balance runs a surplus (US$ 1.421 billion) greater than the accumulated result posted in March this year, which was US$ 1.012 billion. In April, exports totaled US$ 8.985 billion and imports, US$ 7.564 billion.

In the 75 business days from January to April 20th, the Brazilian balance of trade recorded exports of US$ 47.675 billion and imports of US$ 43.417 billion.

The trade surplus this year stands at US$ 4.258 billion, a reduction of 63.6% in comparison with the same period of last year, which had 76 business days. Last year, exports during the period totaled US$ 42.490 billion and imports, US$ 30.768 billion.

The lower trade surplus is a consequence of imports at a higher rate than exports. This happens because of the depreciation of the dollar in Brazil, which encourages purchases of machinery and equipment from foreign countries. Furthermore, the higher income of the Brazilian population favors purchases of imported products.

According to the press office at the Brazilian Ministry of Development, Industry and Foreign Trade, the effects of the tax auditors' strike on the balance of trade result are only going to be disclosed in early May, when the figures for the entire month of April should be disclosed.

According to the Focus bulletin, published on a weekly basis by the Brazilian Central Bank, the balance of trade surplus projection of market analysts for the entire year has decreased from US$ 25.30 billion to US$ 25 billion.

ABr

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