Brazil Increases Durable Goods Imports by 53%, Driven by Chinese Electric Cars

The volume of Brazilian imports of durable consumer goods jumped 53.4% between January and November 2024 compared to the same period in 2023. According to the Foreign Trade Indicator (Icomex) report released this Tuesday (17) by the Brazilian Institute of Economics at the Getulio Vargas Foundation (Ibre/FGV), the main driver of this growth was the purchase of electric cars from China.

“The increase in durable goods throughout 2024 was driven by imports of electric cars from China. The peak occurred in June, with a variation of +320% compared to the same month in 2023,” the FGV report highlighted.

In addition to durable goods, imports of other industrial categories also grew. The volume of capital goods rose 23.8%, reflecting investments, while intermediate goods saw a 14.5% increase, indicating more significant demand for industrial inputs. During the same period, imports of semi-durable consumer goods rose by 27.7%, and non-durable consumer goods increased by 10.0%.

Impact on the Trade Balance

This accelerated import growth reduced Brazil’s trade surplus in 2024. Between January and November, the surplus totaled $69.9 billion, $19.4 billion less than in the same period in 2023.

Despite the decline in the surplus, total trade volume increased, reaching $554.7 billion by November, $22.8 billion higher than in 2023. The Icomex report stated, “The trade flow was larger, mainly driven by increased imports. “

FGV projects that Brazil’s trade balance will close in 2024 with a surplus between $74 billion and $78 billion. “No significant events are expected to alter the main conclusions and characteristics of the 2024 trade balance,” the report added.

Exports and Imports by Trading Partners

Between January and November, the total volume of Brazilian exports grew by 4.2% compared to the same period in 2023, while the volume of imports rose by 16.5%. China remained Brazil’s leading export destination and the most significant import source.

The trade surplus with China reached $31.0 billion, representing 44.3% of the cumulative trade balance surplus through November 2024. However, in relative terms, China’s share of Brazilian exports decreased, while exports to the United States and the European Union increased.

For the year-to-date period, the volume of exports to the United States grew 10.7%, and to the European Union, 5.7%. On the other hand, shipments to China rose only 1.2%, while exports to Argentina fell sharply by 20.1%.

On the import side, volumes from China showed a significant increase of 38.1%. There were also increases in imports from the United States (+3.9%), the European Union (+0.9%), and Argentina (+11.8%).

These figures reflect the trade dynamics of 2024, marked by greater reliance on Chinese products and a slight diversification in export markets.

Source: InfoMoney

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