The increase in imports of inputs and machinery and equipment in November signal favorable expectations for the manufacturing industry and for agriculture, pointed out the Foreign Trade Indicator of the Getulio Vargas Foundation (FGV).
The imported volume of machinery and equipment – considered as investments in the calculation of the Country’s Gross Domestic Product (GDP) – for the manufacturing industry grew 2.2% in November 2021 compared to November 2020, accumulating an increase of 7.8% in the first 11 months of this year.
Imports of agricultural machinery and equipment jumped 82.5% in November compared to November last year, with an accumulated growth of 33.7% in the year.
The imported volume of intermediate goods for agriculture increased 18.4% in November 2021 compared to November 2020, with an accumulated increase of 14.6% in the year.
In the manufacturing industry, the imported volume of intermediate goods increased by 8.9% in November compared to the same month of the previous year, with an accumulated increase of 27.7% in the year.
“Imports of machinery and equipment, as well as intermediate goods, can be understood as an indicator of favorable expectations for the growth of a sector. It is observed that, in the monthly interannual comparison, the variations in the imported volumes of agriculture surpassed those of the manufacturing industry, whether in the purchase of machinery/equipment or in the purchase of intermediate goods”, highlighted the FGV, in the note from Icomex.
According to the indicator, investment and input imports show more favorable prospects for agriculture than for industry.
“The exchange rate devaluation weighs more for the manufacturing industry than for agriculture, given the differential share of intermediate goods in the sectors. In this context and with the high international prices of commodities, the agricultural sector is relatively less affected than the transformation industry”, justified the FGV.
Considering the trade balance as a whole, the volume of Brazilian exports in November shrank 15.6% compared to November of the previous year.
From January to November, exports decreased 2.2% compared to the same period in 2020. Imports grew 22.3% in volume in November, accumulating an increase of 23.8% in the year.
In November, there was a drop in the volume exported to China (-15.5%), the European Union (-7.5%) and Argentina (-5.2%), compared to the same period of the previous year.
On the other hand, the volume sold by Brazil grew to the United States (109%), other countries in South America (19.2%), Mexico (5.6%) and other countries in Asia (5.6 %).
As for imports, there was a decrease in the volume imported from the United States (-13.8%), other countries in South America (-9.6%) and Mexico (-23.3%).
Brazil imported more from China (6.3%), the European Union (9.8%), Argentina (71.3%) and other countries in Asia (10 1%).
Reference: CNN Brasil
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