Key facts
- Brazil's trade surplus was $7.82 billion in May.
- The May surplus exceeded the market forecast of $7.65 billion.
Brazil's trade surplus decreased to $7.82 billion in May from $10.54 billion in April, though it exceeded the market forecast of $7.65 billion. Exports rose 6.6% year-on-year, driven by higher commodity prices, but oil export volumes fell sharply due to a new tax.
Brazil recorded a trade surplus of $7.82 billion in May, a decrease from the $10.54 billion surplus in April. The May surplus surpassed the market's forecast of $7.65 billion, driven by a 6.6% year-on-year increase in exports to $31.9 billion. This export growth was supported by an 11.5% increase in prices for key commodities such as crude oil, copper ore, beef, and fuels. However, oil export volumes plunged 42.1% year-on-year following the government's imposition of a 12% export tax in March. Imports rose 5.3% year-on-year to $24.1 billion, also driven by higher prices. Year-to-date, Brazil's trade surplus increased by 34.2% to $32.7 billion.
The narrowing trade surplus indicates a potential shift in Brazil's balance of trade, influenced by both global commodity prices and domestic fiscal policy. The decline in oil export volumes due to taxation highlights the impact of government policy on trade performance.