MercoPress. South Atlantic News Agency

Brazil trade surplus rapidly shrinking by flood of imports

Brazil's trade surplus shrank to 882 million US dollars in February, less than one third of the same month a year ago 2.9 billion US dollars, according to the country's Ministry of Development, Industry and Foreign Trade.

Although February exports increased to 12.8 billion this year from 10.1 billion a year ago, imports soared to 11.9 billion from 7.2 billion in February 2007. In the 41 working days of the first two months of 2008, Brazilian exports totaled 26 billion US dollars and imports 24.3 billion with a trade surplus of 1.8 billion. In the same period a year ago Brazil exported 21 billion, imported 15.7 billion and surplus was 5.4 billion. Brazilian exports in 2007 reached 160.65 billion, which was above the government's target of 155 billion, representing a 16.6% increase over 2006, while imports expanded 32% to 120.6 billion US dollars. This resulted in a trade surplus of 40 billion, which was 14% below 2006. Exports of manufactured goods totaled 84 billion, commodities 51.6 billion and semi-manufactured goods 21.8 billion with 11.4%, 27.6% and 11.2% increases respectively. On the imports side, consumer goods soared 33.2%, followed by capital goods 32.4%, fuels and lubricants 31.6% and intermediary and raw materials 30.7%. Orthodox economic policies, balanced budgets, massive influx of capital, soaring world prices for commodities have helped appreciate the Brazilian currency from 4 Reales to the US dollar in 2002 to 1.65 Reales currently. Actually the Real has been one of the developing countries currencies which has most strengthened in the last few years.