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Three Years of the Real Plan
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Three Years of the Real Plan
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IV - The Foreign Trade Balance
The trade balance has been registering a gradual reduction in the monthly deficit.
Export receipts have increased consistently, less in some sectors and more in others like soybeans and footwear that have benefited from the government's adoption of credit, taxation and other incentive measures.
For its part, the growth in imports reflects to a large degree the increased purchase of capital goods that are important for both restoring Brazil's national competitiveness and for renewing its industrial park. As can be seen in the following graph, capital goods have represented a growing share of total imports since implementation of the Real Plan. This trend is the result of the productive investments that are being made in the country due to price stability and the prospects for economic growth. Incorporating the latest technology available in the international market, the imported machinery and equipment allow Brazil to restore and to expand its productive capacity.
There has been a strong quantitative increase in the export of ground coffee, chicken, cellulose and soybeans in large part because of government policies. In addition to this increased volume of sales, export receipts are benefiting also from higher international commodity prices, particularly for coffee and soybeans.
