Economy

Devalued real and economic recovery boost Brazilian exports to Latin America

Jul, 28, 2021 Posted by Ruth Hollard

Week 2021300

The recovery of local economies, the devaluation of the real, and the possibility of ruptures in global supply chains have helped Brazilian exports to gain ground in Latin American countries in 2021, especially through the sale of durable and capital goods such as vehicles and machinery. It may be an important move for domestic manufacturing, which has lost ground in recent years with Chinese sales to the region. But the scenario is too still full of challenges to expect a structural recovery in these markets, experts say.

In general, Brazilian shipments to Latin American peers grew in the first half of this year. This was more due to the increase in the volume traded than due to higher prices, unlike what is observed in exports as a whole. From January to June 2021, the volume exported by Brazil grew 6.6%, compared to the same period in 2020, while prices advanced 25.2%.

Among Latin Americans, however, the growth in exported volume was 42.4% to Argentina (with a 7.1% rise in prices) and 36% to other countries in South America (7.9% in prices). Exports to Mexico increased 18.5%, and prices increased 17.9%. Meanwhile, for the United States and the European Union, the growth in volume was lower, 15.4% and 4.9%, respectively. For China, there was even a small drop (2.6%), and the country’s gain in market share – to 34.4% of Brazilian exports in the period – is explained more by the almost 39% increase in prices. The data are from the Foreign Trade Indicator (ICOMEX), from FGV IBRE (Fundação Getulio Vargas’s Brazilian Institute of Economics).

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/brasil/noticia/2021/07/28/cambio-e-retomada-animam-venda-da-industria-para-a-al.ghtml

Sharing is caring!

Leave a Reply

Your email address will not be published. Required fields are marked *


The reCAPTCHA verification period has expired. Please reload the page.