The Gross Domestic Product (GDP) of agribusiness increased by 6.75% from January to July 2020 in comparison with the same period last year, according to CNA and Cepea. In the monthly performance report, the agribusiness GDP grew for the seventh consecutive time. The primary sector grew 2.95%, followed by services (1.03%) and inputs (0.55%). The result was driven mainly by the record grain harvest, meeting the rising international demand and the domestic market, also by exports, given the “China effect”, which favored the profitability and competitiveness of the sector, with Brazil’s Real sliding low against the U.S. dollar. In the agricultural sector, GDP increased by 4.3% in the first seven months of the year, when compared to the same period of 2019. The result mainly reflects the higher prices of coffee, corn, soybeans and wheat, as well as the expectation of greater production in the current harvest, with a record harvest of grains and with the expansion of products, such as coffee and oranges.

Source: Revista Dinheiro Rural

*Translated by Ia Niani