Brazil: May trade balance shows the lowest surplus in three years

The Brazilian trade balance registered a surplus of US$ 4.9 billion in May, reported the Ministry of Economy this Monday (13).

According to the Ministry of Economy, the value represents a drop of 42.1% compared to the same month last year, when the balance was positive and totaled US$ 8.5 billion.

Last May’s result was also the lowest since 2019, that is, in three years.

According to the government, the Brazilian trade balance in May shows that:

• exports totaled US$ 29.6 billion;
• imports totaled US$ 24.7 billion.

According to the Ministry of Economy, exports, by the daily average, registered an increase of 8% in May compared to the same period last year. On the other hand, purchases from abroad advanced by 33.5%.

War in Ukraine

The commercial result was recorded amid the war in Ukraine, which began in late February.

The conflict has restricted trade in some products and raised the price of basic items such as oil and food, benefiting Brazilian exporters and attracting resources to the country.

Year to date

In the year to date, from January to May, the positive trade balance totaled US$ 25.1 billion. This represents a drop of 5.5% compared to the same period last year when the surplus totaled US$ 26.6 billion.

From January to May this year, exports totaled US$ 131.1 billion – an increase, by the daily average, of 20.3% compared to the same period last year. Imports, on the other hand, totaled US$ 105.9 billion – a growth of 29%.

Forecast for 2022

The Ministry of Economy also maintained its forecast for the trade surplus this year at US$ 111.6 billion. However, the estimate may change in the next month.

If proven true, that will be the first positive balance above US$ 100 billion in a closed year, a new record. The Ministry had kept a record since 1989. Until then, the largest balance recorded had been in 2021 (US$ 61.4 billion).

The government expects that exports will total US$ 348.8 billion in 2022, up 24.2% compared to last year (US$ 280.8 billion) and that purchases from abroad will total US$ 237.2 billion this year – up 8.1% against 2021 (US$ 219.4 billion).

Source: G1

To read the full original article, please go to:

https://g1.globo.com/economia/noticia/2022/06/13/balanca-comercial-tem-superavit-de-us-49-bilhoes-em-maio-menor-valor-para-o-mes-em-tres-anos.ghtml

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