China accounts for 70% of Brazil’s trade surplus, says FGV

Brazil’s trade surplus with China reached US$ 19.1 billion from January to May this year. The value is equivalent to 70.4% of the country’s balance in the period, highlights the bulletin of the Foreign Trade Indicator (Icomex) released on Tuesday by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV IBRE).

In the year-to-date results for the first five months of the year, the country’s trade surplus totaled US$ 27.1 billion, the highest value since 1997.

The bulletin highlights that prices command the dynamism of Brazilian exports to China. Asia’s share percentage of Brazilian exports rose from 32.5% to 34% between January-May 2020 and 2021. Between these two periods, the variation in the volume exported was 1.4% and in prices, 32.3%.

For the American market, there was a greater balance between prices and quantity. In the same comparison, the volume shipped to the United States increased 12% and average prices increased 11%.

For Argentina, the increase in quantity is highlighted in the bulletin. In Brazilian exports from January to May to the neighboring country, the volume jumped 45.1% while prices rose 6.5%. For the other South American countries, the dynamics were similar, with an increase of 31.8% in quantity and 5.8% in average prices.

Source: Valor Econômico

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