FGV: Agriculture boosts the import of capital goods and inputs in October

The agricultural sector invested more in the import of capital goods and production inputs in October, which signals a favorable expectation for business in the coming months, according to data from the Foreign Trade Indicator (ICOMEX) of the Brazilian Institute of Economics. Getulio Vargas Foundation (Ibre/FGV).

In October, the imported volume of capital goods grew 32.7% compared to the same month in 2020. Imports of machinery and equipment for agriculture, on the other hand, registered a jump of 112.2% in the period.

The imported volume of capital goods, whether by industry or agriculture, is accounted for as an investment in the Gross Formation of Fixed Capital (GFCF), an investment measurement in the Gross Domestic Product).

As for inputs for industrial and livestock production, which signal a rise in these activities, there was an increase of 43.5% in the imported volume of intermediate goods for agriculture in October 2021 compared to October 2020. Imports for the manufacturing industry grew 22.4% in the period.

“What does this mean? More favorable expectations for the agricultural sector would be leading to an increase in purchases of capital goods and intermediate goods, above variations in the transformation industry”, explained Lia Valls, associate researcher at Ibre/FGV, in the ICOMEX note.

From January to October, the imported volume of capital goods grew 9.0% compared to the same period of the previous year, while machinery and equipment for agriculture rose 30.2%.

Source: Money Times

To read the full original article, visit the link:https://www.moneytimes.com.br/agropecuaria-turbina-importacao-de-bens-de-capital-e-insumos-em-outubro-diz-fgv/

Sharing is caring!