Brazil trade surplus narrows to $74.6 billion in 2024 amid import rise

On Monday, Brazil reported a significant reduction in its trade surplus for the year 2024, with the figure dropping to $74.6 billion. This represents a near 25% decrease from the previous year's surplus. The decline was primarily attributed to a surge in imports as the country's economy performed better than initially anticipated.

The annual figures came on the heels of a December surplus that reached $4.8 billion, surpassing the $3.9 billion economists had projected. Despite the yearly decrease, the 2024 surplus was the second-largest on record since 1989, second only to the $98.9 billion surplus seen in 2023.

Brazil's export numbers for 2024 showed a slight dip of 0.8% to $337 billion compared to the previous year. This slight fall was due to reduced prices and quantities of major exports like soybeans and corn. On the flip side, imports experienced a 9% increase, climbing to $262.5 billion, fueled by robust domestic demand.

The country's economic performance consistently exceeded projections throughout 2024, with the government estimating a 3.5% growth in gross domestic product (GDP) for the year.

Looking ahead to 2025, the Ministry of Development, Industry, Trade, and Services has projected that the trade surplus will be in the range of $60 billion to $80 billion.

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Source: Investing.com