The Gross Domestic Product (GDP) of agribusiness grew by 0.64% in the accumulated period from January to July 2019 in relation to the same period last year, according to the Brazilian Confederation of Agriculture and Livestock (CNA) and the Center for Advanced Studies in Applied Economics (Cepea).
The result was mainly driven by the input segment, with an increase of 7.88% in the first seven months of the year. Agroindustry and services registered an expansion of 1.60% and 1.18%, respectively. The GDP of primary activity (within the gate) was the only one that declined (-2.99%), according to the CNA/Cepea bulletin.
“The GDP of the primary segment remains under pressure due to higher production costs and lower prices for its products”, explain CNA and Cepea through a Technical Communication. Analyzing the behavior of GDP by sector, livestock farming drove the GDP result upwards, with growth of 7.04% from January to July, with positive performance in all links of the production chain. Highlight for the primary segment, with an increase of 10.96%.
“Although the primary livestock segment also continues to be pressured by high production costs, the rise in the prices of its products, combined with a greater volume of production, has guaranteed an expansion of 10.96% in the first 7 months of the year”, explains the technical study . In agriculture, the GDP result was negative at 1.75% this year. Only inputs showed a positive result, due to the favorable moment for the fertilizer and pesticide industries.
July – In July, agribusiness GDP changed by 0.12%. There were increases in the input segments (0.77%), agroindustry (0.36%) and agroservices (0.55%), while the primary segment recorded a decrease of 1.14%.
Source: DATA
