Brazil has chance to increase exports by US$ 7.8bn, says IDB

According to an estimate by the Inter-American Development Bank (IDB) released on June 7th, Brazil might gain an additional US$ 7.8 billion per year in exports as a result of nearshoring, the tendency to have the supply chain closer to the buyer.

Overall, Latin America and the Caribbean have the potential to gain an additional US$ 78 billion in the short and medium-term: US$ 64 billion in foreign sales of goods and US$ 14 billion in service exports.

The IDB stated that most of the growth in Brazilian exports (around US$ 4.1 billion) would come from increased trade with the United States – something that could materialize quickly. Another $3.1 billion would be generated by expanding sales to Latin American countries, and the remaining US$ 546.8 million, through medium-term opportunities.

See below the track record of container exports from Brazil to the US from January 2021 to April 2022. The data was provided by Datamar’s platform, DataLiner.

Containerized exports from Brazil to the US | Jan 2021 – April 2022 | TEU

Source: DataLiner (click here to request a demo)

The bank assessed that only Mexico is above Brazil in terms of growth potential. The country, favored by its proximity to the United States, may have a boost of US$ 35.3 billion in exports. Next are Argentina (US$ 3.9 billion), Colombia (US$ 2.6 billion), and Chile (US$ 1.8 billion).

“Increased environmental concerns, combined with the pandemic and Russia’s recent invasion of Ukraine, created conditions for Latin America and the Caribbean to contribute to the global economy while fighting inflation by playing a more active role in global chains,” said IDB President Mauricio Claver-Carone. He took part in the third meeting with officials from Latin American states, in parallel with the Summit of the Americas, which began on the 6th in Los Angeles (USA).

In a speech before the meeting, Claver-Carone reinforced the information released by the IDB that the change in global supply chains favors countries closer to the consumer market. “We are an ocean of peace and prosperity,” she said. “The stars have never been so aligned for Latin America and the Caribbean.” He called for the issue to be “depoliticized” and declared it a “growth and investment” issue.

Source: Poder 360

To read the full original article, please go to:

https://www.poder360.com.br/economia/brasil-tem-chance-de-aumentar-exportacoes-em-us-78-bi-diz-bid/

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