Brazil’s trade balance saw a surplus of $5.447 billion in February, according to data from the Foreign Trade Secretary (Secex) released this Wednesday.
This figure marks a 111.8% increase compared to February 2023’s surplus, driven by a 16.3% rise in exports to $23.538 billion, while imports went up by 2.4% to $18.091 billion.
A Reuters survey of economists forecast a positive balance of $5.79 billion for the period, slightly above the actual outcome.
In February 2023, Brazil recorded a trade surplus of $2.6 billion.
Despite lower product values and a notable drop in import prices, both export and import volumes increased from February 2023.
The rise in exports last month was fueled by a 63.9% increase in shipments from the extractive industry, 11.5% from agriculture, and 5.0% from the manufacturing industry.
Background
Brazil’s trade surplus highlights its strong global trade presence and diverse exports.
As a key commodity exporter, Brazil plays a vital role in global markets, especially in the extractive and agricultural sectors.
The country’s historical focus on expanding market access has been successful, thanks to government efforts in trade negotiations.
Despite the benefits, Brazil’s reliance on commodities makes it vulnerable to price fluctuations, emphasizing the need for economic diversification.
The modest increase in imports signals cautious domestic demand and growth challenges.
Brazil’s strategy involves diversifying exports and enhancing value-added industries to sustain growth and reduce external vulnerability, maintaining strength in global trade.