Brazilian imports grow in November 2020 after falling for months

The recently released DataLiner data shows that in November 2020, Brazil recorded growth in both imported and exported volumes in relation to the other months of the year, as a result of the country’s economic recovery. Both imports and exports via containers experienced their best month of the year in November when comparing the first 11 months. See this data in the graph below:

Brazilian Imports vs. Exports | Jan to Nov 2020 | TEU

Source: DataLiner

Imports

Imports fell at the height of the global economic crisis and recovered in the last months of the year. As a result of this recovery, November 2020 recorded a volume in TEU 29% higher than the same month of 2019, after months of underperforming when compared to the previous year. See the chart below for Brazilian imports via containers per month and the comparison with the same period in 2019:

Brazilian Imports via Container | Jan to Nov 2019 – 2020 | TEU

Source: DataLiner

Despite the good month of November, the 2020 year-to-date figure at the end of November was lower than the previous two years:

Comparison of Brazilian Imports | Jan to Nov 2016-2020 | TEU

Source: DataLiner

Exports

Unlike imports, Brazilian exports in 2020 experienced a very good year, with volumes greater than 2019 in all months of the year. In November 2020, the exported volumes were 19% higher than the same month of 2019. In the accumulated result for the year, the volume exported via container was higher than the previous four years. Check it out below:

Brazilian exports via container | Jan to Nov 2019-2020 | TEU

Source: DataLiner

Comparison of Brazilian Exports | Jan to Nov 2016-2020 | TEU

Source: DataLiner

2020 Trade Balance

Data released on Monday, January 4, by the Ministry of Economy, point out that the fall in imports at a greater rate than the decline in exports caused the trade balance to end 2020 with a greater surplus than in 2019. Last year, Brazil exported US$ 50.235 billion more than it imported, an increase of 4.6% in relation to the surplus observed in 2019. According to the daily average criterion which divides the total balance by the number of working days, growth amounted to 7.1%.

Last year, Brazil exported US$ 206.972 billion, a decrease of 5.9% in relation to 2019 according to the daily average criterion. Imports totaled US$ 156.737 billion, with a decrease of 9.5% also due to the daily average. As purchases from abroad fell more than sales, the trade balance grew in 2020.

Because of the Covid-19 pandemic, Brazil began to export less as world consumption fell. On the other hand, the country also started to buy less from abroad because of the almost 30% increase in the dollar since last year.

According to the agency, the trade balance surplus could have been greater had it not been for December. Last month, Brazil recorded a negative balance, importing US$ 800.7 million more than it exported.

The decline in exports in December was driven by agriculture, sales abroad of which fell 19.1% last month compared to the same month in 2019. This is due to the anticipation of shipments of various products, such as soybeans (-91%) and unpeeled or raw rice (-99.5%). As sales were more concentrated up until November, shipments fell in the following month.

Mining industry exports shrank 10.3% in December, driven by precious metal ores (-45.2%) and crude petroleum oils (-62.8%). Only the exports of the manufacturing industry grew last month, increasing 5.4% in comparison with December 2019. The main increases were registered in processed sugar, with an increase of 116.64%, in processed gold (+61.5 %), and fuels (+ 25.9%).

The graph below shows the trade imbalance of Brazilian imports and exports via container in the period from January to November 2020:

Trade Imbalance Brazil | Jan 2010 to Nov 2020 | TEU

Source: DataLiner (To request a DataLiner demo click here)

With information from Agência Brasil

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