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.<\/p>\n
In December alone, machinery and equipment exports reached US$ 1.153 billion, down 13.7% from December 2013, but up 16% from November 2014. <\/p>\n
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. <\/p>\n
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%.<\/p>\n
Abimaq believes exports will keep growing in 2015, in case the real (Brazilian currency) keeps losing value against the US dollar. <\/p>\n
Imports <\/strong> <\/p>\n 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.<\/p>\n 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.” <\/p>\n 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.<\/p>\n *Translated by Gabriel Pomerancblum<\/strong><\/p>\n