• Categories
  • Archives

Imports Growing Faster than Exports in Brazil and Government is Happy

Brazil’s imports grew faster than its exports in February. While exports, which totaled US$ 8.750 billion, were up 12.8% in comparison with February, 2005, imports, amounting to US$ 5.928 billion, rose 19%.

This situation reflects the depreciation of the US dollar in terms of the real, which has led Brazilian companies to purchase inputs, especially raw materials, abroad, according to Armando Meziat, secretary of Foreign Trade in Brazil’s Ministry of Development, Industry, and Foreign Trade.

"The ministry is concerned about the exchange rate. Exports are still showing strong growth. The pace, however, is slower than for imports and in previous years," he remarked.

Despite this concern about the value of the dollar – which is worth slightly more than 2.10 reais – Meziat said that the Ministry expects an acceleration in import growth.

"This is good for the Brazilian economy," he said, mirroring comments made by his boss, Minister Luiz Fernando Furlan, to the effect that Brazil does not need large trade surpluses and that the increase in imports adds up to inputs used for local production.

Meziat also stated that foreign trade performance in the first two months of the year "is in line with the goal for 2006," which is to export US$ 123 billion.

Import growth in February was especially intense in capital goods, including industrial machinery. This signals that the domestic market is heating up.

The increase in relation to February, 2005, was 26.6%. The 26% increase in consumer goods, including such items as clothing, home appliances and housewares, furniture, beverages, and cigarettes, is, on the other hand, a reflection of the exchange rate, according to the secretary.

For the year, exports total US$ 18.021 billion, and imports, US$ 12.355 billion, yielding a trade surplus of US$ 5.666 billion.

Agência Brasil

Tags:

  • Show Comments (1)

  • Tina

    Thanks
    πŸ˜‰ thanks that helped a little

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

IBM Opens in Brazil LatAm’s First Mainframe Software Center

US-based IBM has opened a mainframe software competency center in SΓ£o Paulo, Brazil, enabling ...

Quiet Revolution

There is a sad note about both works reviewed. The artists in them are ...

US Counting on Brazil to Quench Its Orange Juice Thirst

Brazil seems poised to increase its market share of oranges in the United States. ...

Political rally (comΓ­cio) in Brazil

In Brazil, King and Wannabe Kings Are All Naked

It’s not only the king who is naked in Brazil. All the presidential candidates ...

Ghana’s Black Stars Promise a Ball Show Against Brazil

Ghana is the only one of the five African nations to have made it ...

In New York, Brazil’s Lula Talks About World Hunger and Poverty

Today and tomorrow, Brazilian President Luiz InΓ‘cio Lula da Silva will be in New ...

In the Scale of Happiness, the Danes Being First, Brazil Gets Low 81st Place

According to the first "World map of happiness" created at the University of Leicester, ...

Mercosur’s Chair Moves to Brazil Amid Unexpected Cheering Times

What was forecasted to be a diplomatic flop only a month ago has turned ...

Putin Invites Lula to G-8 Meeting and Britain Talks Creative Economy with Brazil

Brazilian President Luiz InΓ‘cio Lula da Silva has been invited by the president of ...

Brazil Unveils Plan to Fight ‘Global Predatory Competition’

Brazil has just launched the Greater Brazil Plan. Under the slogan “Innovation for Competition. ...