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Brazil’s trade surplus dips to $760mn
June 4, 2013, 4:10 am

Brazil's finance minister has said that Brazilian GDP this year would probably grow less than 3.5 percent foreseen in the 2013 federal budget. [Getty Images)

Brazil’s finance minister has said that GDP this year would probably grow less than 3.5 per cent foreseen in the 2013 federal budget [Getty Images)

Brazil’s trade balance will tend to improve from June onward because it will no longer be impacted by a tax measure that carried the cost of some 2012 oil imports into early 2013, foreign trade secretary Tatiana Prazeres said Monday.

“We still have a high level of oil consumption and imports may remain at high levels, but we expect a positive trade balance by the end of the year,” she said.

Brazil recorded a trade surplus of $760 million in May, the lowest since 2002.

The figures were released by the ministry of development, industry and trade on Monday.

In May this year, Brazil’s exports dropped 5.9 per cent year-on-year to $21.8 billion, while imports increased four per cent year-on-year to $21.1 billion, official figures show.

Its trade surplus registered a fall of 74.3 pe rcent from last year.

Brazilian President Dilma Rousseff has approved numerous tax cuts and incentive measures to stimulate the economy since she came to power.

In the first five months of 2013, Brazil’s trade accumulated a deficit of 5.4 billion dollars, the worst ever recorded for the period.

The Brazilian government expects that its trade surplus for the year of 2013 will reach $15 billion against the market estimation of only $8.3 billion.

Finance minister Guido Mantega has said that Brazilian GDP this year would probably grow less than 3.5 per cent foreseen in the 2013 federal budget.

He however ruled out the government carrying out more stimulus measures to boost consumption.

According to him, the measures announced so far are effective and the economy is growing despite an unfavourable external environment.

Source: Agencies

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