Brazil machinery exports keep expansion pace in 2023

Mar, 28, 2023 Posted by Gabriel Malheiros

Week 202316

Exports that had performed well in 2022 in the machinery and equipment sector are keeping up the pace at the beginning of 2023. Foreign sales in the first two months totaled US$ 2.1 billion, a 32% growth compared to the same period in 2022. The sector exported US$ 1.1 billion in February, up 24.5% compared to February last year and 7.6% over January.

According to figures released on Monday (27th) by the Abimaq industry association, foreign sales grew in revenue and shipped volume. The group points out that, in 2022, eight months showed exports above US$ 1 billion. “Results of this same magnitude had only been observed previously in 2012,” informed Abimaq in a note.

With a 39.2% increase in shipments, machinery for logistics and civil construction was the segment that grew the most. Components for the capital goods industry increased by 24.2%. Machines for consumer goods were the only segment to remain flat, with a 0.9% decrease.

Shipments to all regions increased as well. The highlight was an increase of 48.3% in exports to North America in the first two months. South America came in second, growing by 22.3%.

Imports of machinery and equipment closed the first two months at US$ 4 billion, up 5.3% from the same period last year. In February, US$ 1.8 billion were paid for imports, down 4.2% YoY and 11.9% from January.

As a result, the sector’s trade balance in the first two months of the year is negative by US$ 1.9 billion, a 13.9% decrease from the previous year. The deficit was $787.76 million in February alone. There was a drop from year to year (27.4%) and from January (29.5%).

In general, manufacturers’ total net revenue fall 7.1% in the first two months of the year, totaling R$ 42.1 billion. Total revenue in February was BRL 21.7 billion, a 7.8% decrease from the same month in 2022 but a 7% increase from January.

Internal net revenue amounts to R$ 31.2 billion between January and February, 13.2% less than last year’s first two months. In February, the figure was BRL 16.1 billion, down 13.5% compared to the same month in 2022 and up 7.1% compared to January.

Apparent consumption of machinery and equipment (production plus imports minus exports) closed the first two months at R$52.7 billion, a reduction of 12.7% year-on-year. In February, apparent consumption reached R$ 27.1 billion, a performance 11.6% lower than in the same month of last year and an increase of 5.9% over January.

“The expectation is for a relative improvement in machine sales for the rest of the year to sectors that are less reliant on credit, such as those producing nondurable consumer goods, but also those related to infrastructure works,” stated the industry association.

Source: Valor Econômico

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