US Keeps by Far Title of Brazil’s Number 1 Exporter and Importer of Capital Goods

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Brazilian exports of capital goods yielded US$ 8.6 billion in 2005, performance 25% above that registered in 2004 and a new record for the sector. The imports of machinery and equipments, in turn, increased by 24% and reached US$ 8.5 billion.

With this result, the sector, which traditionally presented deficits, registered for the second consecutive year a surplus in it’s trade balance. The information was released Tuesday, February 7, by the Brazilian Machinery Manufacturers Association (Abimaq).

According to the entity, the increase in exports was influenced by the consolidation of markets, the diversification of destinations and incentives offered by the Brazilian government.

On the other hand, external purchases were influenced, according to Abimaq, by the warm up in the country’s economy, which generated an increase in demand for products not manufactured by national industry. The surplus in the sector’s accounts increased from US$ 4.57 million to US$ 100 million.

The main destinations of Brazilian exports were the United States (28.1% of the total), Argentina, (11.5%), Mexico (6.6%), Germany (6.3%) and United Kingdom (5.3%).

The greatest suppliers to Brazil were the United States (27.9%), Germany (18.3%), Japan and Italy (8.5%), France (4.7%) and China (3.2%).

The sector as a whole had revenues of US$ 25.5 billion last year, an increase in 18.3% in comparison to 2004. As well as the performance in exports, there was an increase in 17.8% in the internal consumption of machinery and equipments.

Investments made by the industrialists in the sector in 2005 added up to US$ 6.2 billion. Although this is a record, Abimaq says it is below the expected. The industry of machinery and equipment sealed the year with 212,000 employees, 2.4% more than in 2004.

Anba – www.anba.com.br

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