Brazil to Get US$ 14 Billion Trade Surplus This Year, One Third of 2007

Car making in Brazil Brazilians are finding some encouraging numbers in their latest statistics. Data shows that the foreign trade surplus in March was US$ 1.77 billion, the same as the February surplus and slightly higher than forecasted.

Although expected, industrial production rose 1.8% in February over January boosted by a slight recovery in credit availability and the automotive sector.

Brazil faces a rough year in trade accounts due to the fall of international prices of commodities and slower demand for the country's manufactured goods.

In March, Brazilian exports were US$ 11.81 billion, down from 12.61 billion in March 2008. Imports were 10.04 billion, down from $11.63 billion in March a year ago.

Even in 2008 Brazil was anticipating a reduction in trade surplus, mainly because of rising imports on sustained domestic economic growth and a strong currency.

Brazil's economy expanded 5.1% in 2008 and the US dollar plunged to 1.60 real. However since last October the real has been eroding and now stands in the range of 2.20 to US dollar and Brazilian growth this year could plunge to zero.

Brazil's trade surplus for the first quarter of 2009 was US$ 3 billion, higher than the year-ago figure of 2.76 billion. However, according to the central bank's weekly survey of experts opinion released this week, the 2009 foreign trade surplus will reach just US$ 14 billion down from US$ 24.7 billion in 2008 and US$ 40 billion in 2007.

Industrial production was supported by a robust increase in automotive sector production according to IBGE, the Statistics and Geography Institute. Auto output jumped 9.2% in February compared to January, according to the country's vehicle-makers association, Anfavea.

Helped by steep discounts and tax breaks auto sales soared in January and February after having fallen in November and December., aided by steep discounts and tax breaks. The sales have sharply reduced stocks.

However IBGE also pointed out that Brazil's industrial production declined sharply in February, 17%, compared to the same month a year ago.

Mercopress

Tags:

You May Also Like

Brazil’s Boxing Champion Signs with New Orleans Promoter

Lion Heart Boxing Productions announced that it has inked Brazilian Welterweight Contender Antonio Mesquita ...

Brazil Puts Biodiesel in the Tank

While developed nations around the world are working on diversifying 10 to 20 percent ...

Bovespa, São Paulo, Brazil, stock market

Brazil’s Stock Market – the Path to Riches or Rags?

I have just read an interesting book called "Emerging Markets" published by the Economist. ...

Brazil Actively Helping Implantation of Cape Verde’s First Public University

The Brazilian Minister of Education, Fernando Haddad, and the Cape Verdean Minister of Education ...

Brazilian Oil Workers Strip Naked to Protest Their Wages

A group of Brazilians, all of them retired and pensioners, got naked today in ...

RAPIDINHAS

He’s been called O Rei da Bossa (The King of Bossa), O Mito (The ...

Indians Don’t Feel at Home in Brazil

Amnesty International has documented and campaigned against human rights violations committed against indigenous peoples ...

It’s Time Brazil Show Generosity to Neighbors, Says Minister

The Brazilian Minister of Foreign Relations, Celso Amorim, says that Brazil should make it ...

Silencing Women with a Shot in Brazil

Virtually nothing is known about females who are murdered at the hand of Brazil’s ...