São Paulo – The Brazilian machinery and equipment industry recorded growth of 19.9% in revenues in the first three months of the year, compared with the same period of 2009, having totalled 16.7 billion Brazilian real (US$ 9.5 billion). In March alone, the sector posted 7.2 billion real (US$ 4.1 billion) in revenues, the best result ever for the month, representing growth of 47% over March of last year. The balance was disclosed today (5th) by the Brazilian Machinery Manufacturers Association (Abimaq).
The secretary director of Abimaq, Carlos Pastoriza, stated, however, that 2009 was a particularly bad year, and earnings in 2010, with the exception of March, are still below the average for the last few years. "We are still going through a process of recovery from the international financial crisis."
Pastoriza claimed to fear that the recovery seen in the past few months might be harmed by the increase in the benchmark interest rate (Selic) and the appreciation of the real (Brazilian currency) against the dollar. “This growth may be strongly affected by the increase in the Selic rate,” he stated.
The appreciated exchange rate was also pointed out by the Abimaq as one of the factors that harm exports. Machinery sales to foreign countries dropped by 4.4% in the first quarter compared with the same period of 2009, and totalled US$ 1.88 billion. In March, however, there was growth of 50% compared with February, with sales totalling US$ 850 million.
Imports , though, are on the rise and reached US$ 5 billion, a figure 5% greater than recorded in the same period of last year. The United States are the leading exporter of machinery to Brazil, and accounts for 25.8% of Brazilian purchases, followed by Germany (13.2%) and China (12.5%). Pastoriza claimed that the Asian country is increasing its export volume to Brazil, and will probably surpass Germany by the end of the year.
*Translated by Gabriel Pomerancblum
