An Analysis of the Brazilian Economy by Flavio Maluf

The Brazilian Economy, in general, grew by 0.4% in the first quarter of the year 2018, this increase is found by comparing the first quarter of the year 2018 relative to the last quarter of the year 2017. These figures are courtesy of the Brazilian Institute of Geography and Statistics (IBGE). When the numbers are further compared, there was an increase of 1.2% in comparison with the first quarter of the year 2017. These figures are drawn from the Agricultural sector. Despite the growth mentioned, further analysis reveals that the current year was not really as good as the beginning of the year 2017. Emphasis on this observation was reiterated by Flavio Maluf, the President of the Companies Eucatex, the Impresario. Read more about Flavio on crunchbase.

According to Folha de S. Paulo, a comparison in the Gross Domestic Product (GDP) of agriculture and livestock between January and March fell by 2.6% relative to the previous year during the same period of time. According to Flavio, the agricultural sector lost its rhythm between April and June due to a demonstration by truck drivers that lasted for about 10 days. These demonstrations were due to a decrease in diesel oil and regulation of road freight consequently leading to crisis shortages for agricultural producers who couldn’t drain production. During the same period, part of the plants in the Centre-South had slowed harvest or some even stopped production.

Lack of circulation of Sugarcane and Maize during the demonstrations affected not only producers and tradings but also disrupted production of proteins with the former product having a 19% harvest occurring between April and June and latter reaching 33% during the same period. Another product that took a blow was the coffee chain due to the delay in receipt of raw material and in turn exporters could not export their product. All these products are intertwined in one way or the other thus reflecting in the GDP. Despite the negative impact on the GDP, Flavio Maluf noted that the Soybeans gave birth to the GDP in the first quarter of 2018. According to Folha de S. Paulo, the GDP benefited from Soy Production but the decrease in the production of rice, maize and leaf tobacco aided in the detrimental decrease of the agricultural GDP rate by 2.6%. Despite of all this, it is worth mentioning that the fall in GDP had been seen since last year’s data was quite high according to Flavio Maluf. View:


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