Low productivity in the country motivates consumption of imported products, according to IBRE

The highest increases were recorded in the industries of vehicles, various products, clothing, textiles and metal products. The only sectors that did not decrease were pharmaceutical and chemicals, pharmaceutical and transport equipment (aircrafts, ships and others)
Institucional
22 Maio 2014

The consumption of imported products in the country hit a new record, reaching 22.5% in the first quarter this year. The study released by the National Confederation of Industry (CNI) showed that compared to the last quarter of 2013, the index increased 0.4%. According to Aloísio Campelo, an economist of the Brazilian Institute of Economics (FGV/IBRE), over the past two years the increased share of imported goods in domestic consumption has been driven mainly by the low productivity growth and production cost differentials between Brazil and its main competitors. That, in addition to the bad behavior of developed economies, redirected exports from emerging competing markets to markets that were growing a little more, such as Brazil, he said.The highest increases were recorded in the industries of vehicles, various products, clothing, textiles and metal products. The only sectors that did not decrease were pharmaceutical and chemicals, pharmaceutical and transport equipment (aircrafts, ships and others). However, the export coefficient - which measures the relevance of foreign sales - remained at 19.8%, 0.1% above the rate recorded at the end of last year.The result surprised by its persistence throughout 2012 and 2013, years of exchange devaluation. The evolution of the first quarter of 2014, in fact, followed this line, said Campelo, explaining that the average selling dollar remained at R$ 2.36 in the period, compared to R$ 2.28 in the previous quarter, and nonetheless imports continued advancing in the domestic market. 

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