Brazilian agriculture’s Gross Domestic Product (GDP) increased somewhat by 0.19% in the first quarter of 2023. The record-breaking crop, which also led to an increase in agricultural services, was the primary driver of GDP growth. On the other hand, negative pricing in the industry, with decreases compared to the first quarter of 2022 for several of the key agricultural and agroindustrial items, hindered GDP performance. In 2023, agriculture is expected to make up around 24.5% of the economy, a little decline from the 25% registered in 2022. The growth was driven by the prospects of a record grain crop, and the increasing production of coffee and sugarcane, due to the reduction in the prices of fertilizers and pesticides.
Sources: Canal Rural/Uniao Nacional da Bioenergia (*Translated by Ia Niani)