Business & Leadership

Brazilian Economy Registers Record Surplus in June

The positive result made the Brazilian government raise its annual surplus estimate from $55 billion to $60 billion.

The positive result made the Brazilian government raise its annual surplus estimate from $55 billion to $60 billion.


On June 5th the Brazilian Ministry of Industry, Foreign Commerce and Services (MDIC) announced that the economy had a surplus of $7.2 billion raising the accumulated balance of the nation to $36.2 billionfor the first semester. These two figures are the best ever recorded for the month of June, since the government started to use this indicator in 1989.

 

In June average daily exports grew  23.9% compared to the same period  last year, to $19.8 billion. In the first half of the year, the total value of exports reached $107.7 billion, representing a growth of 19.3% over the first semester of 2016, according to the data provided by the Brazilian Office of Foreign Commerce.

 

The number of imports also expanded, but did not grow as much as the exports. In June average daily imports went up by 3.3%, relative to last year, to $12.6 billion. In the first semester,  total imports stood at $71.5 billion, which represents a growth of 7.3%, when compared to the same period in  2016.

 

Breaking down the products sold:

The numbers reported show an increase of 28.5% in the export of raw products, 28.2% in semi-manufactured products and 16.1% in manufactured goods. In the group of primary products, the sales went up, especially for grains of corn, crude oil, steel, pork meat, soy and red meat. In the field of semi-manufactured products, cast iron, crude sugar, cellulose and lumber, among other items, registered growth. For manufactured goods, growth in the sales of flexible tubes of iron and steel, switches and valves, farming machinery and cargo vehicles was registered.

 

Imports, on the other hand, totaled $12.6 billion in June, an increase of 3.3% over  2016, bydaily average. According to the data provided by MDIC, there was an increase in the purchase of fuels and lubricants, intermediate goods and consumer goods. On the other hand, there was a decrease in capital goods.

 

In the field of fuels and lubricants, growth occurred mostly due to the increase in imports of diesel , gasoline, coal, natural gas, and kerosene for aviation. The segment of intermediate goods, saw growth for items such as naphtha for petrochemicals, ethyl alcohol, parts for receptors and manure. In the field of consumer goods, the main importats were immunologic products, medication, cars, whiskey, blankets and cosmetic products.

 

Regarding capital goods, results were down from last year, mainly in due to a drop in sales of domestic and industrial ovens, devices to purify gases, elevators to transport products, heat exchangers, energy frameworks and transformers.

 

Oil:

In the first semester of 2017, Brazil achieved a positive credit of $3.3 billion in the operations of oil and its derivates. In 2016, the country ended the same period with a negative of $957 million. An increase in exports was responsible for the positive result of 2017, as they were up 106.4%, while imports of oil registered a more modest increase of 25.6%.

 

As a consequence of the positive numbers registered by the Brazilian economy, President Temer made the claim that the country no longer faces a time of turmoil. You can read more here: http://www.leadersleague.com/en/news/there-is-no-crisis-in-brazil-says-president-temer

 

C.S.

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