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