RIO DE JANEIRO, BRAZIL – Brazil will have a record trade surplus of US$68 billion this year, 33.6% higher than in 2020, boosted by the rise in prices of raw materials and the recovery of the world economy, according to projections released on Wednesday by the exporters’ employers’ association.
If the estimate of the Brazilian Foreign Trade Association (AEB) is confirmed, the South American giant will have a record surplus in 2021, above the US$67 billion dollars of positive balance reached in 2017, so far the largest in its history.
According to the entity, Brazilian exports in 2021 will be approximately US$270.1 billion, 28.7% higher than in 2020. They will be driven by the strong rise in international markets of prices in agricultural products -especially soybeans-, oil and iron ore.
Exports will also grow due to the economic recovery of Brazil’s main trading partners, such as China and the United States, which increased their demand for raw materials after last year’s crisis caused by the pandemic.
On the other hand, imports will be driven by the purchase of materials that are not currently produced in the country, such as spare parts and components for vehicles, which will raise Brazilian purchases from abroad to about US$202 billion this year, 27.1% more than in 2020.
In 2020, Brazil had a trade balance surplus of US$51 billion, 6.1 % higher than in 2019, but with a reduction in exports and imports due to the coronavirus pandemic.
The GDP of Latin America’s largest economy plunged 4.1 % last year amid the health emergency of the coronavirus.
This year, Brazil’s rapid economic recovery has led government and market estimates to project GDP growth of around 5% in 2021.