Abstract

During approximately two and a half years the Brazilian economy sustained a
trade surplus of about USS 12 billion. The origin and sustainability of this surplus became
one of the main issues of the controversy about the medium and long-term growth perspectives
of the country. Using the latest data, and comparing 1987 with 1986, this article tries
to show that the trade surplus collapse in the second half of 1986 was an aberration, corrected
in 1987. ln the latter, the level of activities achieved in 1986 proved to be compatible
with the level of surplus sustained from 1984 to the first half of 1986. The article also tries
to explore some of the implications of the country s exceptional capacity to generate a high
surplus, ending with a brief reference to its position facing foreign debt.

JEL Classification: F134.