Prices of Brazilian imports soared 32.4% in the first month of the year over the same period in 2021 and once again weighed on the “terms of trade”, an indicator that measures the relationship between the value of imports and that of exports, which fell 13 % compared to January 2021, according to the Foreign Trade Indicator (Icomex), released this Friday (18) by the Brazilian Institute of Economics of Fundação Getulio Vargas (Ibre/FGV).
The trade balance in January closed with a deficit of US$ 214.4 million, as the Ministry of Economy had already reported, slightly below the negative balance of the first month of 2021 (US$ 219.8 million).
The result was obtained through an increase of 31.4% in the value of exports and an increase of 30.9% in imports. But the volume of imports fell by 1.4% compared to January 2021, that is, the jump in the total value imported was due to the 32.4% rise in prices, according to Icomex.
“The decline in imported volume and the increase in prices are explained by the behavior of non-commodities. The volume index of this aggregate fell by 4.2% and prices increased by 30.8%. It is observed that, while commodities shape the trajectory of exports (63% share of the exported value in January 2022), non-commodities explained 90% of imports”, says the Icomex report.
Imports of energy products from the United States, especially fuel oil and liquefied natural gas (LNG), led the movement.
“It is worth mentioning the 66% increase in the price of fuel oil, the main product, followed by liquefied natural gas (LNG, 531%). In both cases, the United States is the main supplier, accounting for 61.4% of fuel purchases and 81.4% of LNG (an increase of 809%)”, continues the report.
According to FGV, the United States stands out as a supplier of energy and China, of inputs and components for the industry.
China stands out with sales of fertilizers (106% growth compared to January 2021, although Russia remains the main supplier), medicines (540% increase compared to a year earlier), organic compounds, telecommunications equipment and car parts.
The increase in import prices, compared to export prices, has been occurring since mid-2021, recalls the Icomex report. Since then, the terms of trade index has been on a negative trajectory.
For FGV researchers, the trend tends to continue, given the scenario for world trade. Diplomatic tensions between Russia and the United States, over Ukraine’s relations with Western countries, maintain pressure on oil prices, at the same time that the prices of agricultural “commodities” exported by Brazil tend to remain high. , but without new rounds of great appreciation.
Source: CNN Brasil
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