Covid-19 vaccine imports boost foreign industrial inputs in Brazil

Vaccines, as well as metals and raw materials for fertilizers, helped boost industrial input imports in 2021, compared to the pre-pandemic period. Imports within this category rose from being 34.7% of total imports between January-August 2019, to 39.8% in the same period this year.

Inputs from this category generated US$ 54.4 billion during the 8-month period, which is US$ 10.8 billion more than the same period two years ago. In vaccines alone, including Covid vaccines, an additional US$ 1.39 billion was generated during this period.

According to analysts, the rise in imports of inputs does not point to a structural change. In addition to the cyclical aspect of vaccines, the increase in imports of inputs may due to higher prices, shocks that resulted in unusual replacement of stocks and trade diversion in response to logistical and production bottlenecks. Livio Ribeiro, a researcher at the Brazilian Institute of Economics at the Getulio Vargas Foundation (FGV Ibre), highlights that there are several changes in logistical chains. “This conspires to produce unusual results that may simply be a spike in a very peculiar situation that we are still experiencing.”

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/brasil/noticia/2021/09/20/vacina-turbina-compra-de-insumio-industrial-estrangeiro.ghtml

Sharing is caring!