Brazilian footwear exports fall

Foreign sales totaled USD 71.4 million in September, a drop of 26%. However, exports to the United Arab Emirates rose.

From the Newsroom

São Paulo – Brazilian footwear exports generated USD 71.64 million in September, a 26.2% drop over the same month of last year. The country shipped out 9.86 million pairs, a fall of 14% in the same comparison. The data was shown this Thursday (04) by the Brazilian Footwear Industry Association (ABICALÇADOS).

From January to September, exports totaled USD 700 million, a 12% drop over the same period of 2017. The country shipped out 78.87 million pairs, down 10.7% in the same comparison.

Heitor Klein, ABICALÇADOS’ president, blamed the devaluation of emerging markets against the dollar for the poor performance. “If a strong dollar favors pricing for the Brazilian export, this effect is offset when the importer’s currency has also weakened,” he said, according to a statement by the association. “In Argentina, Brazil’s main market, the peso has gone down 100% in the year’s first nine months,” he added.

United Arab Emirates

The United Arab Emirates is the only Arab country among Brazil’s top 20 footwear importers. And exports to the country generated USD 640,700 in September, up 181.5% over the same month of last year, according to data from the Ministry of Industry, Foreign Trade and Services (MDIC). The dirham, the UAE’s currency, is pegged to the dollar, thus, it hasn’t suffered the devaluation seen in other emerging markets.

However, year-to-date, exports to the UAE have dropped 18.3% over the same period of 2017, to USD 7.43 million. In the period, Brazil shipped out 764,000 pairs to the country, an 18.9% fall in the same comparison.

Translated by Sérgio Kakitani

Peter Muller/Cultura Creative/AFP

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