Trade surplus hits a record in June due to significant drop in imports

The drop in Brazil’s imports caused by the devaluation of the Real and the drop in economic activity made the trade balance hit a record in June. Last month, Brazil exported US$7.463 billion more than it imported. This is the biggest surplus for a single month since records began in 1989.

Despite this, in the first semester, the trade balance was still below last year. In the first six months of 2020, Brazil exported US$23.035 billion more than it imported. The result is 10.3% lower than the balance for the same period last year, at US$25.68 billion, and is at the lowest level for the first semester since 2015.

Last month, both exports and imports fell. Brazil exported US$19.912 billion in June, 12% less than in June 2019, according to the daily average criterion. Imports fell even further. Brazil bought US$10.449 billion last month, marking a decrease of 27.4% in the same comparison, also by the criterion of the daily average.

In the accumulated result for the year, exports fell more than imports. From January to June, Brazil sold US$102.43 billion, 6.4% less than in the same period in 2019. Imports totaled US$79.395 billion, with a decrease of 5.2%.

Products

The manufacturing industry dragged exports down, with US$118.08 million less shipped abroad than in May 2019, down 21% by the daily average. The extractive industry exported US$54.64 million less, a decrease of 26.1%.

In the manufacturing industry, the main products responsible for the fall in exports are passenger cars, with a reduction of 50.1% in the daily average; processed poultry, down 38.6% by the daily average; and cellulose, with a 24.9% decrease in the daily average.  It is worth noting that the new classification adopted by the Ministry of Economy, which is in line with international standards, has started to consider industrialized food products that have undergone some processing.

In the extractive industry, the main decreases occurred in the sale of crude petroleum oils or bituminous minerals, crude (37.3%), and iron ore and its concentrates (17.4%).

Agriculture

Only agriculture exported more than in June last year, with US$57.49 million more shipped abroad, up 29.7% by the daily average. The main highlights were soybeans, rice with husks, latex, and rubber.

Regarding imports, purchases of items related to agriculture and livestock fell by US$2.49 million, a reduction of 15.6% by the daily average, in the same comparison. Mining industry imports fell by US$10.42 million (22.3%), and mining industry purchases shrank by US$174.28 million (28.1%).

The main products responsible for the fall in imports were petroleum fuel oils, with a decrease of 60.8% by the daily average in relation to June of last year; passenger car vehicles, down 75.7%, and vehicle parts and accessories, down 57.2%.

Source: Agência Brasil

Sharing is caring!