Commercial balance: Chemical industry records deficit of us$ 63 billion in 2022

The commercial balance deficit for chemical products totaled US$ 63 billion in 2022. According to the Brazilian Chemical Industry Association (Abiquim), the value is double of that which was recorded in 2019, the period prior to the Covid-19 pandemic, when the deficit was US$ 31.5 billion. The total also surpassed the record of $46.2 billion set in 2021.

According to Abiquim’s Economics and Statistics director, Fátima Giovanna, Brazil needs public policies to increase the industry’s competitiveness.

“We have a structural issue, we have to solve some problems related to the Brazil Cost, in particular, the cost of raw materials, energy. But, above all, we need the government to take a look at the national industry, think about long-term policies and state policies that restore competitiveness to the sector and attract investments”, she points out.

The chemical sector is responsible for providing essential inputs for various economic activities, such as agriculture, transport, civil construction, health and hygiene.

When imports exceed the value of exports, it means that the trade balance has a deficit. This is the case of the chemical industry. In 2022, Brazil imported US$ 80.3 billion in chemical products, a record for the historical series that started in 1989. This total amount is equivalent to the acquisition of 57.4 million tons of products. On the other hand, exports totaled US$ 17.3 billion.

Despite a 19.5% growth compared to 2021, the amount exported is much lower than total imports. According to Abiquim, 15.6 million tons, in terms of physical quantities, were moved to destination markets, a reduction of 3.4%, with considerable reductions in the exported volumes of additives for industrial use (-15.7% ), basic petrochemical products (-30.8%) and thermoplastic resins (-2.4%).

In comparison with other markets, the country registered a surplus in relation to neighboring countries in Latin America. But it was well behind North America and the European Union, which together accounted for an approximate deficit of US$ 25 billion, while in Asia the value was US$ 22 billion.

According to the Ministry of Development, Industry, Commerce and Services (MDIC), the Brazilian trade balance in 2022 was US$ 62.3 billion. The country exported US$ 335 billion and imported US$ 272 billion. The data indicate that the agricultural sector had the highest growth of the year in terms of export value. The Manufacturing Industry also had an increase. The Extractive Industry, on the other hand, presented a reduction in the amount exported.

Source: Semana 7

To read the official report, visit: https://www.semana7.com.br/economia/balanca-comercial-industria-quimica-registra-deficit-de-us-63-bilhoes-em-2022/58698

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