Brazil rises in ranking of major exporters; its share of global sales is 1.3%

RIO DE JANEIRO, BRAZIL – Brazil rose one position and became the 25th largest exporter of goods in the world, according to the annual report released on April 12 by the World Trade Organization (WTO), based on global transactions in 2021.

Brazilian exports totaled US$281 billion in 2021, which corresponded to an increase of 34% compared to the previous year (US$210 billion). With this result, Brazil increased its share in global sales to 1.3%. In 2020, it had been in 26th position, with a share of 1.2%.

According to the survey, Brazil also became the 27th largest importer, with purchases totaling US$235 billion in 2021, up 41%. In 2020, it had been the 29th largest buyer worldwide.

The increase in Brazilian exports last year was driven by the jump in commodity prices, especially the increase in sales of iron ore (72.9%), oil (54.3%), and soybeans (35.3%).

China continued to top the ranking of the largest exporters, with a 15.1% share of total sales, followed by the United States (7.9%) and Germany (7.3%).

The U.S. continues to lead the ranking of importing countries, with a 13% share. In the sequence are China (11.9%) and Germany (6.3%).

WTO REDUCES GLOBAL TRADE GROWTH PROJECTION IN 2022

The WTO is now projecting a 3% growth in global merchandise trade in 2022, down from the initial estimate of 4.7%, and 3.4% in 2023, citing the impacts of the war in Ukraine and the sharp rise in commodity prices.

The global trade watchdog’s report said the conflict in Ukraine has hurt the world economy at a critical time, as the coronavirus pandemic -and Chinese lockdowns, specifically- continue to weigh on the recovery.

“The economic repercussions of this conflict will go well beyond Ukraine’s borders.”

“It is now clear that the double whammy of the pandemic and the war has affected supply chains, raised inflationary pressures, and reduced expectations for output growth and trade,” WTO Director-General Ngozi Okonjo-Iweala said at a press conference.

Okonjo-Iweala also warned of a potential food crisis due to export disruptions in Ukraine and Russia, both major suppliers of grains and other commodities, which could hit developing nations, including some 35 African importers, hardest.

She urged countries to remain committed to the multilateral trading system to avoid the risk of it splitting into two spheres. “I think the costs to the global economy will be quite high if we do that,” she said.