Brasília – Increased prices of imported inputs, especially fertilizers and oil, caused the Brazilian trade surplus to shrink in July. Last month, the country exported USD 5.444 billion more than it imported, down 22.7% compared to the same month in 2021.
The trade balance has accumulated a surplus of USD 39.751 billion in the first seven months of this year. This represents 10.4% less than the period from January to July last year. Despite the decline, the balance is the second historical best for the period, losing only to the first seven months of 2021, when the surplus closed at USD 44.38 billion.
Last month, Brazil sold USD 29.955 billion abroad and bought USD 24.511 billion. Both imports and exports reached record-breaking amounts since the beginning of the historical series, in 1989. Based on the daily average, exports grew 20% compared to July last year. Imports, however, increased at a faster pace: 31.6% in the same criterion.
However, the historical records in imports and exports were due to the increase in international prices of goods. Last month, the volume of exported goods rose on average by only 4.7% compared to July last year, while prices rose 12.2%, favored by the appreciation of commodities (primary goods with international quotes).
In imports, the purchases advanced 8.7%; however, average prices increased 41.6%. The price hike was mainly driven by fertilizers, oil, coal, and wheat, items that became more expensive after the outbreak of the war between Russia and Ukraine.
Last month, the government reduced its forecast for a trade surplus for 2022 to USD 81.5 billion due to the spike in oil and fertilizer prices. Despite the drop in the estimate, this amount could secure a record-breaking trade surplus for the country. Official estimates are updated every three months.
Translated by Elúsio Brasileiro
