Brazil’s Trade Surplus Plummets

BRASILIA (Reuters) – Brazil’s trade surplus dropped 65.1% in January compared to the same month last year, as imports surged while exports decreased.

The largest economy in Latin America reported a $2.2 billion surplus for January, down from $6.2 billion a year earlier, according to the Ministry of Development, Industry, Trade, and Services.

Economists polled by Reuters had anticipated a $3 billion surplus.

This decline followed a 5.7% decrease in exports from January last year, totaling $25.2 billion, primarily affected by significant price drops in key Brazilian exports, including crude oil and iron ore.

In contrast, imports rose 12.2% to $23 billion, fueled largely by increased purchases of fuels, fertilizers, non-electric engines, machinery, and automotive parts.

Last month, the government estimated that the trade surplus would range between $60 billion and $80 billion this year, compared to $74.2 billion in 2024, a revision from an earlier forecast of $74.6 billion.