MercoPress. South Atlantic News Agency
Brazil's trade deficit soars in February: 6.3bn dollars if first two months of 2014
While imports increased, exports of raw materials were down 8.5% Brazil recorded its largest February trade deficit ever, deepening a trade gap this year that underscores the lack of competitiveness from local industry. The deficit reached 2.125 billion dollars the trade ministry announced.
February adds to the January shortfall of 4.06 billion in January, its largest monthly trade gap ever. Last year the country posted a February trade deficit of 1.279 billion.
The trade balance has become a serious challenge for Brazil, which is struggling with weaker demand for its commodities exports and low productivity among Brazilian manufacturers or the 'Brazil cost' with an impact on the competitive edge.
The worsening trade position raises additional concerns about weakness in Brazil's currency, the real, and persistently high inflation. As slowing exports and foreign investment reduce the inflow of dollars to the economy, a weaker real makes imports more costly.
A drop in the prices of some Brazilian exports like soy and economic problems in neighboring Argentina have raised fears that Brazil may post a smaller trade surplus than last year or even a deficit.
In 2013, Brazil posted its smallest trade surplus in more than a decade as imports of fuel and consumer goods gained speed while exports eased.
Exports of raw materials fell 8.5% in February on an annual basis to 7.17 billion, the trade ministry said. Semi-manufactured goods exports retreated 8.7%, while manufactured products slipped 9.2%.
However imports in February were marked by a 2% rise in consumer goods and a 7.9% in fuels and lubricants. Brazil although almost self sufficient in oil is suffering from a shortage of refining capacity, which must be imported.
Likewise since presidential elections are scheduled for next October, fuel prices are lagging with a great cost for the government managed giant Petrobras.
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Read all commentsWell, The Liar Mantega, ably abetted by Dilma, has truly fucked with the economy and this is what they deserve.
Mar 08th, 2014 - 11:54 am 0In fact, this is what they get for screwing around with Mr. Market: he always has the final say.
They are REALLY in the shit now and the way back is going to need a competent incumbent as Finance Minister, not The Liar that they have now.
The “Brazil Cost” is another LatAm thing: the unions have far too much say and influence over society and while that is the case LatAm will always be the joke of the manufacturing world.
They all need a “Blessed Margaret” to castrate the unions and kick out the grafters, even if it means a dictatorship for a period of time until HONEST people can be found to run a democracy.
But you see, that is not what the voters really want. They say they want democracy but they don’t want to WORK, they want all the holidays, etc. that their union can get for them and stuff the economy.
Let me guess their solution....wait for it...wait for it....Devalue.
Mar 08th, 2014 - 03:49 pm 0Yep that'll fix everything
I said it will fix everything!
They will devalue their way to prosperity just like Argentina and Venezuela has.
Stupid Marxist Monkeys ruined the only opportunity that had in a generation to make that country civilized.
It's called dry! Thermoelectric need oil.
Mar 09th, 2014 - 12:44 pm 0Let the industry out of it.
https://www.youtube.com/watch?v=fsLM48OCp8g
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