Brazil posted a trade deficit of $1.745 billion in January, the first shortfall for the month of January in five years and an indication that trade might continue to be a drag on overall economic growth. The setback was fuelled more by a sharp fall in export, which were 20% down to $14.43 billion from the same month last year, rather than imports, which also fell 1.3% to $16.175 billion, Economy Ministry figures show.
Brazil federal government ended 2019 with a primary deficit of R$95.1 billion ($22.5 billion), the lowest fiscal loss in five years, the National Treasury reported. It was the sixth consecutive year that the government spending exceeded taxes and tax revenues. Only in 2014 the deficit in the Brazilian accounts managed to be lower than in 2019, when the accounts registered negative results of the order of R$23.5 billion.
Brazil’s external accounts registered a deficit of $ 50.7 billion, the worst result in the last four years, according to information published by the Central Bank. The report says that the result was caused by the trade balance, which in 2019 was $ 13.6 billion below the amount recorded in the previous year. Brazil’s trade surplus decreased from $ 53 billion in 2018 to $ 39.4 billion in 2019, reflecting retractions of 6, 3% in exports and 0.8% in imports.