Brazil clothing industry see 25.5% increase in Jan-Jul imports

The latest data unveiled by the Brazilian Textile and Apparel Industry Association (Abit) show that imports of clothing items reached a total amount of USD 1.18 billion in the first seven months of the year, up 25.54% from 2022. In turn, exports totaled USD 105,23 million, showing a slight 1.3% growth. The sector’s deficit totaled USD 1.07 billion.

In the first seven months of the year, the total balance deficit, which included all sectors of the Brazilian clothing industry, reached US$ 2.83 billion. This value is derived from exports (excluding cotton fiber), which totaled US$ 582.24 million, down 18.01% from the same period in 2022, and imports, which totaled US$ 3.42 billion, a 4.75% increase.

The chart below displays the evolution of Brazilin imports of clothing items (HS code 61 and 62) from Jan 2019 to Jun 2023.

Clothing items imports | Jan 2019 – Jun 2023 | TEU

Source: DataLiner (click here to request a demo)

July Figures

In July 2023 alone, the value of exports in clothing segment was US$ 15.5 million, representing an increase of 11.16% over the same month of last year, up 1.27% from last June. Imports totaled US$ 125.8 million, with a 4.43% YoY growth and a decrease of 11.22% compared to June 2023. The sectoral deficit was US$ 110.3 million.

The total exports in the textile and clothing sector amounted to US$ 78.8 million, down 15.04% compared to the same month of 2022 and 11.58% compared to June 2023. Imports represented a cost of US$ $445.90 million, a decrease of 6.47% and 9.09%, respectively. The  balance of payments stood negative at US$ 361.10 million in the month.

The increase in imports, according to Fernando Valente Pimentel, director-superintendent of Abit, was one of the causes of the negative net job balance in May and June, following four months of good outcomes. Decreasng retail and production rates are also part of the equation that explains the donward trend presently experienced in this industry.

“Imports through traditional means increased by more than 30% in the last 12 months. Furthermore, we have enormous – unfair –  competition from Asian e-commerce platforms,” comments Pimentel.

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