Rising exports do not prevent USD 18.1bn deficit in the electronics industry

Electronics exports climbed 20.3% in the year’s first half and totaled US$ 3.2 billion. However, this expressive increase did not prevent the sector from closing the period with a deficit of US$ 18.01 billion, 7.8% above the negative balance recorded in the first six months of 2021. From January to July, imports grew 9.5% and totaled US$ 21.18 billion. The Brazilian Association of Electronics Industry (Abinee) released the data.

According to data from the Association, in the first half of 2022, all areas in the industry grew, with the highest rate occurring among Electrical Installation Material (+64.6%). In this case, the performance was mainly influenced by the expansion of 311% in foreign sales of fuses and by the increase of 50% in exports of circuit breakers.

Exports of Electrical and Electronic Components grew 11.8%, totaling US$ 1.4 billion.

Such result includes exports of components used in industrial automation (+56%), components for electrical installation material (+38%), hermetic motor compressors (+22%), on-board electronics (+21%) and passive components (+ 6%). It is worth noting that all these items are among the ten most exported products in the sector.

Exports of Industrial Equipment (+48.3%), IT (+42.6%), Telecommunications (+37.5%), Industrial Automation (+22.0%), GTD (+6.5 %) and Household Utilities (+4.0%) also gew.

Regarding export destinations, the Aladi countries (Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela) continue to be the primary export destination totaling US$ 1.6 billion.

When comparing the first half of 2022 with the same period of the previous year, the share of Aladi countries increased from 47% to 49%, while the US share of exports decreased from 24% to 20%.

Also noteworthy was the 43.7% increase in sales to European Union countries, which accounted for 12% of the sector’s total exports.

Imports

Brazilian electronics industry imports reached US$ 21.2 billion in the first half of 2022, a result 9.5% above the one attained in the same period of 2021 (US$ 19.3 billion).

The highest growth rate occurred in GTD (+89.5%), mainly influenced by the increase in external purchases of photovoltaic modules (+141%), which reached US$ 2.5 billion. It is worth mentioning that photovoltaic modules occupy the second position in the ranking of most imported products in this industry, after semiconductors (US$ 3.4 billion).

Notably, the number of photovoltaic modules imported in the first half of this year exceeded the total imported throughout 2021 (US$ 2.3 billion).

Semiconductor imports (+26%) contributed to the 2.2% increase in foreign purchases in the Electrical Components market, which totaled US$ 10.5 billion.

In addition, in terms of imports of components, foreign purchases of telecommunication components (US$ 1.4 billion), IT components (US$ 1.2 billion), on-board electronics (US$ 1.2 billion), and parts for industrial equipment (US$ 739 million) also increased.

There was also growth in imports of IT goods (+20.5%), Industrial Equipment (+9.4%), Electrical Installation Equipment (+3.1%), and Industrial Automation (+2.5 %).

On the other hand, the areas of Household Utilities (-17.3%) and Telecommunications (-3.6%) showed a retraction in imports.

In the first case, there was a decrease in foreign purchases of various products, such as vacuum cleaners (-56%), ovens (-52%), and electrothermal cookware (-29%), among others.

In Telecommunications, the reduction was mainly due to the 57% decrease in imports of digital routers.

The main origins of imports continue to be Asian countries (except the Middle East), which totaled US$ 15.8 billion, representing 74% of the total, with only China representing 50% and the other countries in this region, 24%.

Imports of goods from these countries grew 12.2% compared to the result obtained in the first half of 2021, with 11.4% in purchases from China and 13.9% in acquisitions from other countries in this bloc.

It was also found that, while the share of Asian countries increased from 72% in the first half of 2021 to 74% in the first half of 2022, the European Union’s share of imports decreased from 13% to 11% in the same period.

Trade balance

In the 1st half of 2022, the trade balance deficit for electronic products totaled US$ 18.01 billion, 7.8% above the one in 2021 (US$ 16.71 billion).

Such results came from the 20.3% increase in exports, which totaled US$ 3.16 billion, and the 9.5% increase in imports, which totaled US$ 21.18 billion.

Most of the deficit was due to business with Asian countries (US$ 15.5 billion); the negative balance with China alone reached US$ 10.5 billion.

The Aladi countries were the only ones to offer a surplus in the trade balance of products in the Brazilian electronics industry, totaling US$ 679.3 million. However, despite being positive, this result was not enough to offset the significant deficits in other regions.

Source: Comex do Brasil

To read the full original article, please go to: https://www.comexdobrasil.com/exportacoes-em-alta-nao-impedem-deficit-de-us-181-bilhoes-da-industria-eletrica-e-eletronica-no-primeiro-semestre-do-ano/

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