Brazil is a commodity exporter – and even more so than official statistics suggest. The share of its exports taken by what are classified by the government as primary goods was just below 30 per cent for most of the past two decades, rising to nearly half of all exports in the last five years. But if we include items such as raw and refined sugar, unsweetened cocoa powder, crude soybean oil, cocoa butter and other products that have a level of processing but are closely derived from commodities dug up or harvested in the country, the proportion rises to different levels. Chart of the week takes a look.
The revised picture shows the shrinking role in trade played by Brazilian manufacturers and the vulnerability of Brazilian exports to the shifting tides of the global economy.
Using our broader classification, Brazil’s commodity-based exports rise to half of the total during the past two decades and to more than two thirds in the last year. The share of manufactured goods therefore falls from about half to less than a third – showing that growth in Brazilian exports has been driven entirely by commodity-based goods.