Brazil´s trade balance registers surplus of US$1.4 billion in second week of August

Data released on Monday, August 17, by the Foreign Trade Secretariat (Secex) of the Economy Ministry indicates that the Brazilian trade balance registered a surplus of US$1.395 billion and a current account of US$6.894 billion, in the second week of August 2020 – with five working days – as a result of exports worth US$4.145 billion and imports of US$2.75 billion.

In the year so far, exports totaled US$129.781 billion and imports, US$96.407 billion, with a positive balance of US$33.374 billion and a trade flow of US$226.188 billion.

Fall in imports

On the export side, compared to the daily average until the second week of August 2020 (US$888.87 million) with that of August 2019 (US$894.07 million), there was a 0.6% dip, due to the decrease in sales in the mining industry (-17.4%) and in manufacturing (-3.6%). On the other hand, there was an increase seen in the agricultural sector (+ 31.2%).

The drop in exports was mainly driven by the decrease in sales of the following products from the extractive industry: Crude oil or bituminous minerals (-35.7%); copper ores and concentrates (-75.2%); iron ore and concentrates (-2.1%); stone, sand and gravel (-52.8%) and aluminum ores and concentrates (-14.9%). Regarding the products from the manufacturing industry, the drop in exports was mainly driven by non-electric engines and machines and their parts, except piston engines and generators (-75.8%); aircraft and other equipment, including parts (-77.1%); cellulose (-22.2%); passenger car vehicles (-41.2%) and alumina – aluminum oxide-, except artificial corundum (-39.7%).

On the import side, the daily average until the second week of August 2020 (US$550.05 million) was 22.3% below the August average of last year (US$707.72 million). During the same time period comparison, spending on agriculture and Livestock fell (-3.3%), as did manufacturing (-19.7%) and also the mining industry (-77.8%).

The fall in imports was mainly driven by the decrease in spending on the following agricultural products: Latex, natural rubber, balata, gutta-percha, guaiúle, chicle and natural gums (-53.4%); whole fish alive, dead or chilled (-22.1%); vegetables, fresh or chilled (-19.9%); barley, unground (-43.5%) and unground corn, except sweet corn (-29.9%). In the manufacturing industry, the fall in imports occurred due to the decrease in expenses with the purchase of civil engineering installations and equipment and builders, and their parts (-90.0%); petroleum or mineral fuel oils, except crude oils (-49.7%); fertilizers or chemical fertilizers, except crude fertilizers (-27.1%); passenger car vehicles (-61.4%) and automotive vehicle parts and accessories (-17.9%). Finally, in the extractive industry, the fall in imports is due to the decrease in spending on coal, even in powder, but not agglomerated (-72.7%); crude petroleum or bituminous mineral oils, raw (-80.3%); natural gas, liquefied or not (-100.0%); copper ores and concentrates (-100.0%) and other ores and concentrates of base metals (-47.6%).

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