Brazil trade surplus falls short in November

BRASILIA, Dec 5 (Reuters) -

Brazil's trade surplus undershot expectations in November, marking the latest annual decline as strong economic activity has demanded more imports, government data showed on Thursday.

Latin America's largest economy posted a $7.0 billion surplus for the month, below the $7.8 billion forecast in a Reuters poll and marking a 20% drop from November last year.

The result came from $28 billion in exports, up just 0.5% from a year earlier, and $21 billion in imports, which rose 9.9%, said the Ministry of Development, Industry, Trade, and Services.

The surge in imports reflects Brazil's robust economic activity, fueled by higher investments and household demand amid a tight labor market.

Earlier on Thursday, President Luiz Inacio Lula da Silva estimated that the economic growth could reach 4% this year, accelerating from 3.2% in 2023.

The expansion in imports persists despite a nearly 20% slump in the Brazilian real so far this year, making foreign goods pricier.

While imports rose across categories - from machinery to pharmaceuticals - exports suffered from lower prices for key commodities like crude oil and iron ore.

Soy and corn shipments saw declines in both volumes and pricing, further limiting November's export growth.

Year-to-date, Brazil's trade surplus has fallen 22% from the same period in 2023 to $69.9 billion. (Reporting by Marcela Ayres; Editing by Kylie Madry)