A decline in exports has caused Brazil's balance of trade (exports minus imports) to close out November in a $2.350 billion deficit, the Ministry for Development, Industry, and Foreign Trade reported Monday (Dec. 1st). The result the worst ever recorded for the month and the largest monthly deficit this year.
In November, exports totaled $15.646 billion – 25% down from November 2013. Imports have also decreased, but by a lower margin, totaling $17.996 billion – a 5.9% drop from November 2013.
With these results, the year-to-date trade deficit rose to $4.221 billion, the worst result for the January-November period since 1998 ($6.112 billion). In the same period of 2013, the trade balance had an accumulated deficit of $268 million.
The greater pace of decrease in exports compared to that seen in imports was also the main factor leading to the increased trade deficit in 2014. From January to November, imports totaled $211.832 billion – 3.9% down from the same period in 2013, whereas exports grossed $207.611 billion – a decline of 5.7%.
According to the ministry, three factors have contributed to the drop in exports in 2014. First, there was a decrease in commodity prices (basic goods traded in the global market), which mainly impacted corn grains (which sold 42.1% less in 2014), and iron ore (export revenue down 18.3%).
A decrease in commodity prices have contributed to the drop in exports in 2014
The second factor was the economic crisis in Argentina, which has led Brazil's manufactured sales to decrease, especially in automobiles. Vehicle exports dropped 40.5% between January and November compared to the same period in 2013.
Finally, an increase in domestic demand for fuel coupled with a scheduled reduction in domestic petroleum production have forced Brazil to import more oil and related products than it has sold.
Translated by Mayra Borges
Fonte: Unprecedented trade deficit recorded in November
