Sunday, May 28

Brazil posts $5.4 bln trade surplus in July, lower than expected

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BRASILIA — Brazil posted a lower than expected trade surplus of $5.444 billion in July, official data showed on Monday, with growth in imports again strongly outpacing that of exports.

The figure came below the median forecast of a $6.993 billion surplus in a Reuters poll.

Imports rose 41.6% in July over the same month last year, to $24.511 billion, the Economy Ministry said.

Exports grew by 23%, to $29.955 billion, added the ministry, stressing that higher prices boosted the results in both cases.

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This effect has become more pronounced in recent months, with the Ukrainian war putting pressure on commodity prices and especially impacting Brazil’s fuel purchases.

Year-to-date, the trade balance surplus in Latin America’s largest economy reached $39.751 billion, down from $44.380 billion in the same period in 2021.

Last month, the government downgraded its outlook for the trade balance this year to a $81.5 billion surplus, from $111.6 billion estimated in April, due to a stronger increase expected for imports. (Reporting by Marcela Ayres Editing by Chris Reese and Tomasz Janowski)