Brazil reported a trade surplus of $7.6 billion in July, the Ministry of Economic Development, Industry, and Trade in BrasÃlia announced, representing a 6.6 percent decrease from the $8.2 billion surplus recorded in July 2023.
Record-breaking exports in July
According to the Brazilian news agency Agência Brasil, the released data showed that Brazilian exports hit an all-time high in July, reaching $30.9 billion. This was further driven by strong performances in the agriculture sector (soybeans and coffee), the extractive industry (iron ore), and the manufacturing industry (sugar, beef, and steel).
Imports also increased compared to July 2023, particularly in capital goods, resulting in a total trade flow of approximately $54.2 billion.
Year-to-date trade performance
In the first seven months of 2024, Brazil achieved $198.2 billion in exports, an increase of 2.4 percent over the same period in 2023, and $148.6 billion in imports, an increase of 5.6 percent.
The Ministry expects Brazil’s exports to grow by 1.7 percent by the end of 2024, reflecting continued strength in key sectors.
Projected decline in trade surplus
In January 2024, the Brazilian government projected a 4.5 percent decline in the trade surplus this year from 2023, totaling around $94.4 billion, likely supported by growth in imports.
Record trade surplus in 2023
In 2023, the South American country’s trade surplus – when the value of exports exceeds the value of imports – reached nearly $99 billion, according to official data.
Challenges in repeating 2023 record
Analysts had previously noted that the 2023 record trade surplus would be challenging to repeat, given that falling interest rates are expected to drive up imports.
The 2023 record trade surplus represents nearly 61 percent growth over the previous record, which was set in 2022.
December 2023 trade surplus
The annual trade surplus data for 2023 followed a monthly surplus of $9.4 billion in December, which exceeded analyst expectations of $7.8 billion in a Reuters survey.
Decline in imports in 2023
Moreover, imports in 2023 fell about 12 percent from 2022, according to figures from the Ministry of Economic Development, Industry, and Trade.
Persistent contraction in imports
This trend persisted throughout 2023, with a contraction observed in both prices and volumes, resulting in lower imports of key products such as fuels, fertilizers, and electronic components used by industry.
Read more: International visitors spend record $3.7 billion in Brazil in H1 2024
Growth in exports in 2023
Meanwhile, Brazilian exports rose 1.7 percent in 2023, experiencing an upswing late in the year due to an unprecedented agricultural harvest and a surge of shipments from the extractive sector.
Record exports to China
The 2023 data also marked the first time Brazil exported more than $100 billion to a single country, China, in one year, said Tatiana Prazeres, Brazil’s foreign trade secretary. Exports to the Asian giant reached almost $106 billion last year.
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