São Paulo – Mechanical capital goods exports from Brazil reached USD 804.26 million in August, down 2.6% from last July and 15.7% from August 2018. Year-to-date, foreign sales grossed USD 6.1 billion, down 5.1% from a year ago, the Brazilian Machinery Builders’ Association (Abimaq) reported this Tuesday (24).
“The slowdown in exports is closely related to the reduced growth rate in the world’s largest economies,” the association said in a press release, stressing the continued trade war between United States and China, “and struggles in several Euro Zone countries,” as well as the recession in Argentina “one of Brazil’s main trade partners.”
On the other hand, machinery and equipment imports exceeded USD 2 billion in August, up 23.7% from July and 59.6% from August 2018. Year-to-date, foreign purchases reached USD 11.5 billion, up 17.3% from a year ago.
Abimaq reported imports in 2019 start growing more from May on and in specific sectors, such as energy generation components, as well as valves, tubes, and probing equipment for oil and gas exploration industry.
The association points out that the industry’s revenue increased by 9.9% in August from July but slid by 2% year-on-year. Year-to-date, revenue was up 1.1% year-on-year. Domestic sales increased, but foreign sales slid.
The organization also reports that the 5% growth forecast for the industry won’t be achieved this year. The expectation now is that it’ll grow by 1% by the end of the year.
Translated by Guilherme Miranda
