COMMODITY GAINS GROUND IN EXPORTS TO NEIGHBORS

In 2023, Brazilian exports to South America experienced a shift towards agricultural and extractive commodities, driven by factors like a drought in Argentina and favorable export prices. This led to an increase in the share of oil, iron ore, soy, and corn in Brazil’s exports to the region. Notably, Brazil’s dominance in manufacturing exports declined, attributed to increased competition from China and the US. Challenges in the automotive sector, including rising input prices and freight costs, also impacted exports. Experts suggest diversifying export portfolios to mitigate risks associated with dependency on a few products. Additionally, Mexico’s growing competitiveness poses challenges for Brazil in industrial goods exports to South American markets.
Source: Valor International / Datamar News