IPEA reduces Brazil’s agricultural GDP forecast for 2021

The GDP of the Brazilian agricultural sector in 2021 is expected to grow by 1.2%, according to IPEA (the institute for applied economic research), which revised downwards its previous estimate of 1.7% due to reductions in corn production and a less favorable scenario for milk.

“The added value of vegetable production in 2021 was also revised downwards: from 1.7% to 1.2%, due to the revision to the corn-production estimate, which should show a 15.5% drop”, announced IPEA on September 23rd.

In August, the estimate had already fallen from 2.6% to 1.7%.

Reductions in sugarcane (-3.7%) and coffee (-21.1%) caused by inclement weather also limited the 2021 projection.

Although lower, the positive result for 2021 will be supported by significant increases in the production of soy (+10.1%), rice (+4.3%), and wheat (+32.9%).

Source: G1

To read the full original article, access the link: https://g1.globo.com/economia/agronegocios/noticia/2021/09/23/ipea-reduz-previsao-de-pib-agropecuario-do-brasil-em- 2021.ghtml

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