MercoPress. South Atlantic News Agency
Brazil with trade deficit for third month running; government blames change in fuel tax accounting
Trade Secretary Prazeres said that there was still 1 billion dollars in fuel import bills that need to be included Brazil recorded in April its third trade deficit in four months, trade ministry data showed on Thursday, another weak result that reflects the deterioration of the country's trade balance due to a sluggish global economy and struggling local industry.
The trade gap is April was 994 million dollars in line with market expectations, but much worse than the 879 million dollars surplus it posted that same month last year. In the first four months of the year, Brazil has accumulated a trade deficit of 6.15 billion, in sharp contrast with the 3.299 billion dollars surplus it recorded in the same period last year.
The government has blamed the large trade deficit so far this year on a change in the tax agency's accounting procedures that included billions of dollars in fuel imports from 2012 in this year's trade balance.
Foreign trade secretary Tatiana Prazeres said on Thursday that there was still 1 billion dollars in fuel import bills that need to be included in this year's trade balance.
Brazil's exports have suffered from a slow-moving global economy that buys less of the country's relatively uncompetitive products. But years of anaemic investment in industries and infrastructure in Brazil have crippled local producers' ability to compete against rivals abroad.
Although exports make up only about 10% of Brazil's 2.5 trillion GDP, they are considered a key part of the economy by President Dilma Rousseff's government.
Brazil's central bank said on Thursday also revealed that US dollar inflows to the country totalled 1.702 billion in the calendar month through April 26.
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Read all commentshttp://www.buenosairesherald.com/article/130180/blue-dollar-skyrockets-32-cents-to-ar5 lol
May 03rd, 2013 - 04:10 pm 0I will ask my question again to see if I get an answer this time: is there ANYONE in charge of the financial strategy of Brasil?
May 03rd, 2013 - 04:58 pm 0It most certainly does not seem so from an independent standpoint.
Analysts chalk Brazil’s recent balance of trade deficits to a sluggish global economy and struggling local industry. Structural and tax reforms are needed and the private sector can help. Private sector efforts have also been take such as B2B trade portals like B2Brazil.com. Companies can be promoted globally in English via www.B2Brazil.com, and can be promoted in Brazil in Portuguese via www.B2Brazil.com.br. These efforts will increase import/export activity, which is necessary for Brazil to maintain its industrial capacity in the long run, as well as to continue its growth and position as one of the top global economies.
May 06th, 2013 - 02:43 pm 0Commenting for this story is now closed.
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