By William Jones, Contributing Reporter
RIO DE JANEIRO, BRAZIL – The trade deficit in Brazil has sunk to an all-time low after it announced a loss of US$6.183 billion so far in 2014, these are the worst ever recorded statistics which show a balance based on exports of US$31.960 billion and imports of US$38.143 billion.
The February statistics, which showed a deficit of a little over US$2 billion, was the poorest showing for the month since records began in 1994. While exports actually increased by 2.5 percent, the improvement was cancelled out by an increase in imports by 7.2 percent in comparison to last year’s figures.
According to experts, Brazil’s worsening balance in trade can be pinned down to a number of micro and macro-economic factors. Brazil’s perennially lightening currency and spiraling inflation possess a constant drag on exports with trade partners. Furthermore, a more expensive U.S. Dollar makes imports increasingly less effective.
During the month of February, Brazilian exports to the European Union fell 20.5 percent compared to the same period in 2013. In comparison to last year, outgoing goods and services dipped to Africa by 18.2 percent, 13.1 percent with the Middle East, and by 11.1 percent with the South American Trade bloc Mercosur, sales alone to Argentina fell by 18 percent in sectors such as manufacturing and raw materials.
A spokesman from the ministry said, Brazilian purchases in oil and gas were the single biggest import category and increased a little more that ten percent from last year. Experts suggest that Brazilian oil companies are unable to produce enough fuel to meet their own countries demand, leaving companies forced to import.
Read more (in Portuguese).
* The Rio Times Daily Updates feature is offered to help keep you up-to-date with important news as it happens.