European Union offsets losses in Brazilian footwear exports to USA and Argentina

At the beginning of this year, Brazilian footwear exports fell to the United States and Argentina, historically the two main markets for the Made in Brazil product. However, the increase in pairs shipped to European Union countries in January offset such losses. According to the Brazilian Association of Footwear Industries (Abicalçados), sales to the European economic bloc grew 29% in revenue and 27.9% in volume.

“The deceleration of inflation in the region (Europe) tends to gradually benefit the consumption of non-essential goods, such as footwear”, assesses the executive president of Abicalçados, Haroldo Ferreira. He points out that the International Monetary Fund (IMF) has revised – upwards – the Gross Domestic Product (GDP) growth projection for the Euro Zone, which should vary by 0.7% in 2023 – the previous forecast was 0.5% .

Main markets
Even recording declines compared to January 2022, the United States continued to be the main destination for Brazilian footwear in the first month of the year. In January, 1.26 million pairs were shipped there for US$ 23.4 million, lower results both in volume (-28%) and revenue (-9.5%) compared to the same period last year.

In January, Bolivia surpassed Argentina as the second main destination for national footwear. In the first month of the year, 735,600 pairs were shipped to the neighboring country for US$ 12.8 million, a result 5.5% lower in volume and 92.3% higher in revenue compared to January 2022.

In general, the Brazilian footwear sector exported, in January, 14.63 million pairs of footwear, which generated US$ 117.9 million. The result is superior both in volume (+4.5%) and in revenue (+16.8%) compared to the first month of last year. The data were disclosed this Monday, 13th, by Abicalçados.
exporting states

In the first month of 2023, the main footwear exporter in Brazil was Rio Grande do Sul. More than 2.8 million pairs left the Rio Grande do Sul factories, generating US$ 46.68 million, a result 17% lower in volume, but 4.5% higher in revenue compared to January of last year. The fact was due to the increase in the average price of footwear exported by Rio Grande do Sul, which went from US$ 15.98 to US$ 16.50.

The second largest exporter of footwear in January was Ceará. Last month, 5.9 million pairs were shipped from there, which generated US$ 34.73 million, a 3.7% drop in volume and a 14% increase in revenue compared to January 2022.

Source: Exclusivo
To read the original report, visit: https://exclusivo.com.br/_conteudo/exportacao/2023/02/14/uniao-europeia-compensa-perdas-na-exportacao-brasileira-de-calcados-para-eua-e-argentina.html

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