Brazil’s Surplus This Year: US$ 7.9 Billion

Brazil’s current account (the total of the trade balance, international travel, interest payments, and profit remittances) registered a US$ 1.761 billion surplus in August, compared with a US$ 1.212 billion surplus in August, 2003.

It was the fourth consecutive positive month. The cumulative surplus between January and August measured US$ 7.990 billion, nearly double the US$ 4.016 billion surplus for all of 2003.

These figures were announced yesterday by the Central Bank’s (BC) Director of Economic Policy, Eduardo Loyo, during a presentation of the monthly “External Sector” report.


He said that the numbers reflect the country’s “strong export capacity” and the “already quite vigorous” economic recovery. As an example of this, he cited last month’s US$ 3.4 billion trade surplus.

The Director pointed out, however, that there is no plan to keep the balance of payments surplus this high, even though the positive results put the country in a “comfortable position” in macroeconomic terms.


In his view, the surplus should end the year at around US$ 6.7 billion, falling next year to around US$ 100 million, in consequence of the anticipated increase in imports.

The BC estimates that exports will amount to US$ 94.5 billion in 2005, up 5% from this year’s level. Imports are expected to grow 16.7%, from US$ 60 billion in 2004 to US$ 70 billion in 2005.


Agribusiness


The Gross Domestic Product (GDP) of Brazilian agribusiness will grow approximately 2.8% this year.


Less, therefore, than the economy as a whole, which financial markets expect to grow 3.8%, and less than the sector’s 6.2% growth in 2003.


This information comes from the head of the Foreign Trade Department of the Brazilian Confederation of Agriculture (CNA), Antônio Donizeti Beraldo.

According to Beraldo, the “slower pace” of agribusiness in 2004 is the consequence of crop losses, due mainly to climatic factors, and problems with soybean sales abroad.

Nevertheless, the head of the CNA’s Economic Department, Getúlio Pernambuco, predicts that this year’s agribusiness surplus will amount to US$ 30 billion.


He bases this projection on the cumulative surplus of US$ 19.44 billion for the period between January and July, 44% more than the US$ 13.49 billion registered over the same period last year.

Once again the outstanding export performers are soybeans and meat. While sales for the soybean complex have already reached US$ 6.5 billion this year, exports of beef, pork, and chicken totaled US$ 3.3 billion.


Beraldo pointed out, however, that other segments, such as cotton and wheat, are gaining space in the agricultural sales portfolio.

According to him, sugar and alcohol exports also rose, totaling US$ 1.6 billion through July, 60% more than last year during the same period.

Agência Brasil
Reporter: Stenio Ribeiro
Translator: David Silberstein

Tags:

Ads

You May Also Like

Brazilian Finance Minister Compares Global Crisis to 1929 Crash

Brazil's Finance minister, Guido Mantega, believes that the Brazilian economy should suffer a little ...

Venezuela and Russia Are Top Importers of Brazil’s Federal District

Chicken and giblets exports from the Brazilian capital BrasÀ­lia totaled US$ 13.251 million in ...

US$ 32 Billion Surplus Makes Brazil Comfortable

The export growth has made Brazil stronger with regard to foreign crises. The US$ ...

Rio Breaks Down. Heaviest Rain in Decades Kills Over 100

At least 102 peoople have been killed by landslides and floods set off by ...

The Arab Zest in Joí£o Bosco’s Brazilian Sounds

What does Brazilian music have to do with Arab rhythms? The answer: a lot ...

Killers of Brazilian Journalist Who Exposed Child Prostitution Get 18 Years of Jail

A Brazilian people’s jury, after two days of trial, declared three military policemen and ...

With Brazil Leading Way, South America Spends Record US$ 50 Bi with Military

Thanks mostly to Brazil and Paraguay, military expenditure in the twelve countries that comprise ...

Real, the Brazilian currency

Brazil’s 2.9% Growth Is the Worst in South America

Brazil's economy expanded 2.9% last year compared to 2.35% in 2005 according to the ...

Moqueca, a Brazilian typical fish dish

Brazil Gives the US and Europe a Taste of Its Diverse Cuisine

Marketing Brazilian cuisine in foreign land, taking Brazilian dishes to other countries and helping ...

Brazil’s Central Bank Workers Go Back on Strike Tuesday

The two-day strike of Brazil’s Central Bank employees ended, Thursday, August 25, but will ...