Marcon Logística Portuária

After the historical record, trade balance should remain strong in 2018

Expectation for this year is that commodity exports and automotive industry pull export growth

In 2017, Brazil recorded its largest trade balance in history. With favorable foreign trade, Brazilian products became more competitive and imports also increased – a sign of increased domestic demand as growth resumed.

This growth was mainly caused by the resumption of the automotive industry, which started to export more and also by the large exportation of basic products, such as iron ore and oil. In the latter case, the trade flow increases because the prices of these products are rising in the international market, which encourages the Brazilian producers.

Expectations

For the president of the Brazilian Foreign Trade Association (AEB), José Augusto de Castro, Brazil should continue to register positive results in 2018. “Our expectation is a [commercial] surplus of around US $ 53 billion, a great surplus, “the executive said.

He commented on the good performance of products such as oil and iron ore and said he believes the highlight should continue with the automotive industry, given the growing trend of the Argentine economy. “When it [Argentina] grows, it demands products from Brazil. Especially in the automotive sector, which should once again be the great driver [of foreign trade], “he says.

 

Source: MDIC

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03.15.2018

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