Economy

Record 2021 trade surplus in Brazil, but complaints about the economy becoming commodities dependent

Record 2021 trade surplus in Brazil, but complaints about the economy becoming commodities dependent

Thursday, January 13th 2022 – 10:02 UTC


Revenue from soybean, beef, poultry, corn, pork and fruit exports totaled some US$ 60 billion, half of the overall Brazilian exports of US$ 120 billion last year. .

Brazil managed a US$ 61,01 billion surplus in its trade balance in 2021, which is 21% higher than the US$ 50 billion of 2020 and the best performance since current stats were officially recorded beginning 1989.

However, despite the success, there are growing critics who question the fact that Brazil once a regional manufacturing hub, has become an agriculture and minerals commodities producing economy.

In effect, revenue from soybean, beef, poultry, corn, pork, and fruit exports totaled some US$ 60 billion, half of the overall Brazilian exports of US$ 120 billion last year. .

Soybeans were once again the most exported commodity: 86.1 million tons of the oilseed. An absolute record that brought in US$ 38.6 billion in revenue. Other goods from the complex, such as soy oil and bran, are not included in the total sum.

Beef ranked second in 2021. Brazil, which faced a three-month sales ban to China, its main consumer, shipped 1.55 million tons in 2021. Despite a lower-than-expected volume export performance, revenue was US$ 7.35 billion.

As for poultry meat, Brazil, world’s second-largest producer of the product, kept its position as the leading exporter and achieved another record. In 2021 4.24 million tons of poultry meat were sold overseas, which generated US$ 6.95 billion.

In the case of pork, Brazil for the first time exceeded the mark of 1 million tons exported which brought in US$ 2.47 billion. Corn overseas totaled 20.4 million tons last year, generating revenue of US$ 4.2 billion. This was because corn was hard hit by the drought

In 2021 Brazilian exports established a new record of US$ 280,39 billion, a 34% increase over 2020. The previous record was from 2011 when overseas sales reached US$ 257,7 billion. Imports also increased, 38,2%, reaching US$ 219,4 billion.

Nevertheless despite the numbers it must be pointed out that bull prices for commodities were critical. The volume of commodities exported increased 3,5% compared to 2020, while prices on average climbed 28,3%. For example iron ore jumped 64,9%, crude, 58,9% and soybeans, 30,3%.Beef despite the three month Chinese purchase ban, saw the price increase by 18,9% last year.

Finally the Brazilian government has planned a trade surplus of US$ 79,4 billion for 2022. However the Focus survey estimates a surplus of US$ 55 billion.




Source link

Related Articles

Back to top button