São Paulo – Brazilian machinery and equipment exports grew by 61.3% in the first two months of the year compared with the same period last year, according to data announced by the Brazilian Machinery Manufacturers Association (Abimaq) this Wednesday (30th). Sales to Arab countries have grown as well, though by a lower rate, of 28%. During the period, foreign sales in general reached US$ 1.6 billion, and exports to Arab countries reached US$ 33.9 million. The region accounted for 2% of total exports.
According to the Abimaq chairman, Luiz Aubert Neto, shipments have increased mainly due to intercompany exports, i.e. sales from Brazilian enterprises to their branches in foreign countries. "I am sure that intercompany sales have accounted for a large share. One dollar is now equivalent to 1.65 Brazilian real, therefore the increase cannot be due to expanded market," said Neto. According to him, however, the rise in sales to some markets, such as the United States and Germany (a worldwide reference in capital goods) was a display of competitiveness by the Brazilian industry.
The leading target markets of Brazilian machinery and equipment were, from lowest to highest, the United States, Argentina, the Netherlands, Peru and Germany. The Arabs rank lower in the list.
Saudi Arabia was the Arab country that purchased the most Brazilian capital goods in the first two months of the year, at US$ 9.7 million. The country ranks 29th on the list, which also comprises Egypt, at 31st, Morocco, at 41st, Algeria, at 34rd, Oman, at 44th, and the United Arab Emirates, at 48th. The figures concerning exports to the region, by the way, concern these six countries, which are on the list of top 50 foreign targets of Brazilian products.
The Brazilian capital goods industry posted 11 billion reals (US$ 6.6 billion) in revenues in January and February this year, an increase of 10.9% over the same period of 2010. The Abimaq chairman, however, underscores that despite the good performance, the figures are below those recorded in 2008, prior to the international economic crisis, when the segment experienced one of its best moments. Revenues have grown mostly due to the performance of the woodworking machinery industry.
Presently, the main complaint of the sector is the rise in imports of capital goods. In January and February, these have reached US$ 4.1 billion, a 30.6% increase over the same period of 2010. This created a US$ 2.4 billion deficit in the segment’s trade balance. The Abimaq chairman highlighted growing imports from China and South Korea, which have risen by 63% and 83.9%, respectively.
*Translated by Gabriel Pomerancblum
