Brazil's trade surplus misses forecast in October as imports surge

BRASILIA, Nov 6 (Reuters) -

Brazil's trade surplus in October came in below expectations, impacted by a sharp increase in imports amid robust economic activity.

Latin America's largest economy posted a surplus of $4.3 billion in October, below the $5 billion forecast in a Reuters poll of economists and the $9.2 billion recorded a year earlier, according to data released by the Ministry of Development, Industry, Trade, and Services on Wednesday. Exports edged down 0.7% from the same month last year to $29.5 billion. Brazilian shipments were impacted by a drop in the prices of key commodities exported by the country, particularly oil, iron ore, and soybeans. Meanwhile, imports jumped 22.5% on a year-over-year basis to $25.1 billion.

Brazil's economy has outperformed this year, with government and economists' projections indicating growth above 3%, driven by higher household consumption, government fiscal expansion, and a recovery in investments.

This strength has supported imports, despite a weaker Brazilian real, which makes them more costly in local currency. Since the beginning of the year, the real has declined about 15% against the U.S. dollar.

On a year-to-date basis, the trade surplus dropped 22% compared to the same period in 2023, reaching $63 billion. (Reporting by Marcela Ayres; Editing by Paul Simao)