Tuesday, January 3rd 2012 - 03:12 UTC

Brazil trade surplus soars to 30bn, the highest since 2007

Brazil's 2011 trade surplus soared 47.8% to nearly 30 billion dollars, compared with the previous year, the highest since 2007, with record exports and imports, official data showed Monday.

Soybeans and iron ore, key export commodities

Last year, exports of goods rose 26.8% to 256 billion dollars while imports went up by 25.7% to 226 billion, the foreign trade ministry said.

“Brazil has never exported or imported so much. This is a sign of the dynamism of our foreign trade,” said Tatiana Prazeres, a spokeswoman for the ministry. The trade balance reached 482.2 billion, 25.7% more than between January and December 2010.

“This gives us a surplus of 29.7 billion, the highest since 2007” when it totaled 40 billion, said the ministry's executive secretary Alessando Teixeira.

Brazil, which last month supplanted Britain as the world's sixth largest economy, had its best year in exports largely due to high prices and strong demand for its key commodities such as soybeans and iron ore.

China was the main destination for Brazilian exports, followed by the United States and Argentina, officials said.

Imports also rose significantly although at a slightly lower pace in percentage terms than exports. Brazilian imports increased in all areas, from raw material and fuel to consumer goods and capital, with the United States, China, Argentina and Germany as main suppliers.

Though the government hopes to post a positive trade balance this year, it has not set any target due to the global uncertainty.

”Our expectation is that in 2012 we will have an increase (in activity) and a surplus, but we cannot yet set a target,“ said Teixeira.

Authorities pointed to the government's export incentives and the rise of the dollar in relation to the Real, the national currency which had appreciated in recent years, affecting the competitiveness of exports.

But Teixeira also underscored ”negative factors' which could hurt trade such stagnation in the Euro zone, slow growth in the United States and the lower performance of the Chinese economy.

“We also expect higher international competition for Brazilian products and a resumption of the ”currency war“, referring to possible currency manipulations by developed countries,” he added.

The Central Bank expects a 4.3% increase in exports this year, while private banks forecasts range from a 7% fall to a 5% increase.

“Imports should grow at a stronger pace than exports,” said the National Council of Industries in a recent report.

9 comments Feed

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1 GeoffWard2 (#) Jan 03rd, 2012 - 02:21 pm Report abuse
What an opportunity for Brasil!

Translate soybeans iron ore, (and oil) profits into manufacture, education and infrastructure across this great nation, and this might be the greatest place to live in the world.
2 Brasileiro (#) Jan 03rd, 2012 - 07:03 pm Report abuse
Brazil will try, Geoff. Our people want be better. Simple lifes with dignity. Thanks.
3 mendoc (#) Jan 03rd, 2012 - 07:25 pm Report abuse
Brazil has it all. Lets hope with responsible government they can pull it off!
4 O gara (#) Jan 03rd, 2012 - 08:36 pm Report abuse
Well gentlemen what wonderful.praise for our neighbour with Argentinas esignificantly down. Ahh but hold on a minue Brasil with its 200 million population has a 30 billion surplus while Argentina with only 40 million will have an eleven billion surplus.So if the brasucas Geoffrey have the opportunity to create a great country which I dont deny I humbly contend Argentina will be even better
5 GeoffWard2 (#) Jan 03rd, 2012 - 10:41 pm Report abuse
. . . . if it wasn't for inflation . . .
6 Fido Dido (#) Jan 04th, 2012 - 01:28 am Report abuse
Geoff, Brazi's “real” inflation is lower than the US. something you cannot understand.

Brazil can do it Brasileiro, there is a long way to go in Brazil, something Geoff for some reason (though he lives there) can't stand, because he knows his silly island (so called developed) is ready for more austerity measures :D..aren't they Geoff, and I bet you have nightmares about your pension. I know, not funny, just reality you hate. The world is changing old man, get use to it, though it's hard for your ego...i know :D
7 GeoffWard2 (#) Jan 04th, 2012 - 11:00 am Report abuse
Happy New Year, Fido.

You read it wrongly. My inflation comment refered to O'G's #4 praise for Argentina's 'superior' economic position.
8 Valle Ricardo (#) Jan 04th, 2012 - 07:12 pm Report abuse
6 Finda Dildo (#)
idiot. he's taking to O gIRA
9 ManRod (#) Jan 05th, 2012 - 01:49 am Report abuse
5 GeoffWard2 (#). . . . if it wasn't for inflation . . .


Or import barriers setup by the KK's!

O gara, if you want to show off against Brasil (last one still has 3x times bigger export volume and balance than ARG), I got one to top your comparison:

Chile has almost only a third of Argentina's Population (17 vs 42 mill) and does have the same export volume and a slightly higher trade balance. So statistically each Chilean produces 3 times what each argentine does for export. ;)

Always depends on the perspective, doesn't it?

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