Brazil Posts Trade Surplus of $4.9 Billion in May, Increases Exports to EU

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Brazil posted a higher-than-expected $4.9 billion trade surplus in May, official data showed on Monday, boosting exports to the European Union amid Russia's invasion of Ukraine, Reuters reported. The result represented a sharp decline from the $8.5 billion surplus posted in May 2021, on the back of a surge in imports while exports grew at a slower pace. Exports were up 8% from the same month last year to $29.6 billion, a record for any month, the Economy Ministry said. Herlon Brandao, undersecretary for foreign trade intelligence and statistics, highlighted the 47.7% increase in exports to the European Union in May, mainly due to the increase in crude oil exports, which more than doubled. "We know that the European Union is a big buyer of oil from Russia. So it may be associated with a greater interest in Brazilian products as a substitute for imports from that origin," Brandao said. Overall, prices of exported goods grew by 21.9% while volumes fell by 7.9%. Brazil, a major seller of soy, iron ore and sugar, posted a decrease in exports of all these products in May. Read more.