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Argentina and Europe Crisis Worsen Trade Deficit in Brazil

04/02/2014 - 08h36

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RENATA AGOSTINI
FROM BRASILIA

The timid trade surplus registered last month, only $112 million, was responsible for Brazil closing it first quarter with record deficit in the trade balance.

From January to March, imports exceeded exports by $6.1 billion, the largest deficit ever recorded since records began in 1994, according to the Ministry of Development, Industry and Foreign Trade.

Although data is considered to be nominal - they do not take into account the effect of inflation - it provides further evidence of weakness in the country's foreign trade. The cumulative shortfall this year exceeds the 17% registered in the first three months last year, when the negative balance of $ 5.2 billion had reach record levels.

In the quarter, exports suffered a 4.1% fall peal daily average over the same period last year, while imports declined 2.1%.

2013 numbers also present a distortion, since it accounts for $2.6 billion from Petrobras imports that had been made, in fact, in 2012.

Still, the government bet on trade surplus at the end of 2014. According to the MDIC, result changes may be seen in the second half before the improvement in domestic production of oil and the slow down of purchase of imported electronics, a demand that has grown due to the World Cup.

MARCH SURPLUS

Despite interrupting two consecutive months of deficit, the positive result in March did not excited anyone: it is the lowest balance for the month since 2001.

The result was due to the sharp rise in sales of soybeans, 73% compared to March 2013. They were $3.1 billion, representing 17 % of the export basket of the country in March.

"China is driving this growth. Their soy demand is high," said Roberto Dantas, director of Deax (Department of Statistics and Support to Foreign Trade).

The country increased by 22.8% purchases of Brazilian products from January to March.

Such expansion offset the significant decline in sales to the European market, from 13.5%, the highest percentage loss. The retraction surpassed even the 10.9% fall in exports to Argentina, a country living a serious financial crisis.

The trade deficit in this group reached $ 2.7 billion in the first quarter, up 50% over the same period of 2013.

Translated by SIMONE PALMA

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