The total value exported by Brazil in 2022 grew 19.1 percent, and the amount imported was up 24.3 percent from 2021. Thus, the surplus in the country’s balance of trade closed out the year at $61.8 billion—slightly higher than the $61.4 billion of 2021.
The data were released today (Jan. 16) by the Getulio Vargas Foundation.
According to the institution, the balance in November and December surprised analysts with the improvement in sales to China, especially in agriculture and livestock. The surplus in the extractive sector sank and the deficit of the manufacturing industry increased.
“Agricultural supply constraints associated with the war in Ukraine and weather issues pushed up agricultural prices, as the increase in export volume was 2.6 percent lower than in manufacturing. In the extractive industry, the prices and the volume of exports declined with the unfavorable performance reported for iron ore. The deficit in the manufacturing industry is recurrent in Brazil’s trade balance since 2009,” the foundation stated.
For this year, the institute forecasts a lower increase in the world economy, with Brazil’s expansion rate below one percent as well as a reduction in both exports and imports.
Internationally, global growth may be positively affected by the relaxation of the zero-COVID policy in China, with a five-percent growth projected by 2023. In the European Union, the energy crisis may lead to lower growth.
“The price of oil will continue to be affected by geopolitical issues and the recovery of extractive exports also depends on the recovery of iron ore sales to China. As for manufactured goods, the crisis in Argentina does not favor the increase in exports of higher added value in the auto sector. In a first reading, the trade balance of 2023 is likely to be lower than that of 2022,” the statement goes on to read.