CNI: recession, exchange rate fuel exports

27 de julho de 2016

Brasília – Brazil’s National Federation of Industry (CNI) said this Wednesday (27) that the US dollar hike against the real and a slumping domestic market have fueled exports and made for weaker imports for the Brazilian process industry. The information is from the Coefficients of Trade Openness report concerning the first half of 2016.

In the 12 months through May, the Export Coefficient, a measure of foreign sales as a share of overall process industry sales, was 15.8% at constant prices (i.e. with price fluctuations discounted), up from 14.2% in the preceding 12 months. The CNI believes the result shows the amount of exports has grown.

The share of imported goods in overall domestic consumption dropped for the second straight time, with the Coefficient of Imported Goods dropping to 17.2% in 2015 and again to 16.5% in the 12 months through May of this year.

This reflects the sharp depreciation of the Brazilian currency throughout 2015 and a scenario of weakening domestic demand, which further compounds the trend of diminishing purchases of imported goods as a share of overall domestic consumption.

*Translated by Gabriel Pomerancblum