The Gross Domestic Product (GDP) of agribusiness grew 6,75% from January to July 2020 compared 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 record grain harvest, which has guaranteed to meet growing international demand and the domestic market, and by exports, in the face of the “China effect”, which favored the profitability and competitiveness of the sector with the devaluation of the Real against to the dollar.
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Primary activity (within the gate) helped boost the result in the first seven months, with growth of 18,46%. Services and inputs expanded by 6% and 2.4%, respectively. Only agroindustry had a year-to-date drop of 0.37%, still reflecting the effects of Covid-19, being the most affected link.
In the agricultural sector, GDP increased by 4.3% in the first seven months of the year compared to the same period in 2019. The result mainly reflects higher prices, with emphasis on coffee, corn, soybeans and wheat, as well as the expectation of greater production in the current harvest, with a record grain harvest and expansion into products such as coffee and oranges.
The livestock production chain increased by 12.25% from January to July, with significant expansion in all links, driven by the appreciation of animal proteins, and in July the upward movement was intensified.
July – In monthly performance, agribusiness GDP grew by 1.26%, the seventh consecutive increase. The primary sector grew by 2.95%, followed by services (1.03%) and inputs (0.55%).
Source: DATA
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