Brazil’s agro GDP may reach a high of up to 2.5% in 2023, projects CNA

The Gross Domestic Product (GDP) of agribusiness in Brazil is expected to grow by up to 2.5% in 2023 compared to 2022, when the soy crop failure and rising costs pressured the sector’s results, the Confederation estimated this Wednesday. of Agriculture and Livestock of Brazil (CNA).

The main representative body of the agricultural sector in Brazil highlighted that the projection signals a recovery compared to 2022, which is expected to end with a 4.1% drop in agribusiness GDP, after registering records in 2020 and 2021.

The confederation assesses, however, that 2023 will be a “year of challenges, both in the internal environment and in the external scenario, in which there may be a lower profit margin”, with a reduction in revenue for the rural producer and an increase in production costs in the activity.

In 2022, the sector has already dealt with the rise in the prices of pesticides and fertilizers, which have risen by more than 100% this year.

The CNA also mentioned that uncertainties about the control of public expenditure and the conduct of fiscal policy should impact the costs of the agricultural sector, especially in tax matters, while the high Selic rate will result in more cost for credit for consumption, costing and investment.

Predictions of a slowdown in world GDP may influence the behavior of Brazilian agro exports next year, he added.

The estimate for the 2022/2023 grain harvest is an increase of 15.5% (or 42 million tons) compared to 2021/2022, reaching 313 million tons, according to the CNA, which cited growth in the planted area and recovery of soybean productivity after the drought impacts the south of the country in 2022.