São Paulo – Capital goods exports from Brazil grossed US$ 13.4 billion last year, up 7.4% from 2013, according to data released this Wednesday (28) by the Brazilian Machinery and Equipment Industries Association (Abimaq). Foreign sales accounted for 45% of total industry revenues in 2014, higher than the historical average of 32%, according to Abimaq.
In December alone, machinery and equipment exports reached US$ 1.153 billion, down 13.7% from December 2013, but up 16% from November 2014.
According to Abimaq, the highlight last year was goods for infrastructure and heavy industries, with exports up 20.6% from 2013. Another sector displaying above-average growth in exports was machinery for the oil and renewable energies industries, up 53.5%, although its share of overall exports was smaller.
The leading destinations for Brazilian capital goods in 2014 were Latin America, at US$ 4.565 billion in exports; Europe, at US$ 3.84 billion; and United States, at US$ 3.225 billion. Regarding the former, Abimaq has reported that sales to Latin American countries “have declined worrisomely since 2011.” In turn, exports to Europe were up 5.7% in 2014 from 2013, and sales to the USA were up 25.1%.
Abimaq believes exports will keep growing in 2015, in case the real (Brazilian currency) keeps losing value against the US dollar.
Imports
Conversely, imports of machinery and equipment to Brazil amounted to US$ 28.7 billion last year, down 12.1% from 2013. In December, imports reached US$ 2.2 billion, down 19.1% from December 2013 and down 1.6% from November 2014. The leading suppliers to Brazil were United States, China, Germany and Italy.
In 2015, Abimaq forecasts that imports should keep dropping due to “the poor performance of the [Brazilian] economy, which should push back decisions to modernize the country’s industrial base for another year.”
Brazil’s capital goods trade balance showed a US$ 15.3 billion deficit last year, down 24.2% from 2013. According to Abimaq, in case the trend of growing exports and diminishing imports proves true in 2015, then the deficit will shrink further this year.
*Translated by Gabriel Pomerancblum
