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Brazil’s Balances of Trade and Travel Post Deficit

Cumbica International Airport in São Paulo, Brazil The Brazilian balance of trade posted a negative balance once again. According to figures disclosed today, April 28, by the Brazilian Ministry of Development, Industry and Foreign Trade, during the fourth week of April, between the 21st and 27th, Brazilian imports surpassed exports by US$ 88 million.

It was the fourth week in which a deficit was recorded this year, the first having been in February and two others in March.

In the accumulated result for the year so far, the balance of trade surplus, of US$ 4.170 billion, is 66.5% lower than in the same period of 2007, when it stood at US$ 12.771 billion.

In the fourth week of April, exports (sales) totaled US$ 2.761 billion and imports (purchases) at US$ 2.849 billion. Growth of 4.9% and of 39.9%, respectively, compared with April 2006. The monthly surplus rose to US$ 1.333 billion, and in the accumulated surplus for the year reached US$ 4.170 billion.

Between January and the fourth week of April, imports grew at a much higher rate than exports. Whereas in the average per business there was a 43.5% rise in imports, exports only grew 12.9%.

Meanwhile, Brazilian tourists keep spending more and more overseas.  According to data reported today by the Brazilian Central Bank, Brazilians' expenditures abroad reached US$ 751 million in March, a 44.1% increase when compared to the same month last year.

In the first three months of this year the value came to US$ 2.538 billion, well above the US$ 1.594 billion reported during the same period in 2007.

The higher expenditures are due to a cheaper dollar, which made it less expensive to travel overseas. Part of this trend can also be attributed to better income among Brazilians.

On the other hand, foreign tourists in Brazil spent US$ 518 million in March, an increase of 19.4%. In the first quarter, foreigners have spent US$ 1.608 billion. During the same period in 2007 they had spent US$ 1.332 billion.

These numbers show a negative balance for Brazil. While last year's deficit was US$ 87 million in March and US$ 262 million in the first quarter, these figures increased to US$ 233 million in March and US$ 930 million for the first three months of 2008.

ABr

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  • Show Comments (3)

  • ..

    Some more clarifications
    [quote]In the long term, they are helping to force Brazilian companies into bankruptcy…[/quote]

    No worries. The owners of such Brazilian companies can benefit from our governmentÀ‚´s Bolsa Familia program.

    [quote]those that can’t compete with the cheaper goods from the States.[/quote]

    We prefer the ones made in PRC, though. High quality low priced ones.

  • adrianerik

    More explanations
    When they say “cheaper to travel overseas” they are talking about the entire trip wholistically, not just the plane flight. The stronger real makes the hotels in America cheaper, it makes the food cheaper, it makes entering Disney cheaper, it makes buying souvenirs cheaper.

    Unfortunately, poor Brazilians usually don’t figure into balance of trade calculations. They were not the ones buying designer jeans, imported foods, cameras, etc. However, with the easing of credit in Brazil and the access to credit cards, even the poor have the purchasing power (although it is debt-based) to purchase goods that normally only the middle and upper classes bought. So, now, they are causing, in a small way, Brazil to have a negative trade deficit as they purchase goods made outside of Brazil. In the long term, they are helping to force Brazilian companies into bankruptcy…those that can’t compete with the cheaper goods from the States.

  • ..

    [quote]The higher expenditures are due to a cheaper dollar, which made it less expensive to travel overseas.[/quote]

    Another pure and unadulterated bullshit. Just the check the international airfares.

    [quote]Part of this trend can also be attributed to better income among Brazilians.[/quote]

    Equal to saying that “the prices of food items have skyrocketed, because the poor Brazilians have more money in their pockets and eat more, thus driving up the prices” 😉

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