Brazil expected this year to post first balance of trade deficit since 2000

24 July 2013

Brazil is this year, for the first time since 2000, to post a balance of trade deficit which, according to the Brazilian Foreign Trade Association (Aeb), will total US$2 billion.

According to a statement issued on the Aeb website the new figure for the trade deficit is a review of figures published in December 2012, which pointed to a surplus of US$16.6 billion.

The deficit, according to Aeb, which is a private non-profit body that represents companies exporting and importing goods and services, is the result of a 5 percent drop in exports to US$230.5 billion and a rise of 4.2 percent in imports to US$232.5 billion.

The drop in prices of raw materials and in foreign sales of Brazilian oil are the reason for the drop in exports according to the association, which added that imports were increasing due to a more favourable exchange rate and a rise in the purchase of oil and its derivatives.

In the first half of the year Brazil posted a trade deficit of US$3 billion, which was the worst result for 18 years.

In 2012 Brazil posted a trade surplus of US$19.43 billion, which was the lowest surplus for 10 years, with exports of US$242.58 billion and imports of US$223.14 billion. (macauhub)