BRAZIL: AGRI GDP TO INCREASE FROM 1.2% TO 3.4% IN 2022, IPEA SAYS

The Institute for Applied Economic Research (Ipea) revised, on Thursday (23), the added value of the agricultural sector from 1.7% to 1.2% in 2021. The reasons for the reduction were the drop in corn yield and production, as well the harsh scenario for milk production. The added value of vegetable production in 2021 was also revised downward: from 1.7% to 1.2%, due to the revision of corn production estimate, which should drop by 15.5% – according to IBGE. Despite this, the result can be positive due to significant increases in the production of soy (+10.1%), rice (+4.3%) and wheat (+32.9%). Soybean is the only product with growth prospects in the added value for the year. The other most important crops may negatively influence the result due to climate issues: corn (-15.5%), sugarcane (-3.7%) and coffee (-21.2%). For 2022, the estimate was revised with an increase from 3.3% to 3.4% in the added value of the farming sector, with growth of 2.2% in cattle production and 3.9% in plant production.

Source: Portos e Navios (*Translated by Ia Niani)