Brasília – The performance of Brazil’s manufacturing industry in the world in 2021 reflected the country’s loss of competitiveness in recent years. study data Industry performance in the worldreleased Friday by the National Confederation of Industry (CNI) (14), indicate that Brazil has lost its position in the world rankings of both manufacturing and exports in the past year compared to the previous year.
The study also analyzed the country’s 11 major trading partners: Germany, Argentina, China, South Korea, the United States, France, Italy, Japan, Mexico, the Netherlands and the United Kingdom. Among them, China recorded the best performance in manufacturing and exporting industrial goods.
Brazilian manufacturing registered a decline in world share from 1.31% in 2020 to 1.28% in 2021, according to the United Nations Industrial Development Organization (Unido). As a result, Brazil was overtaken by Turkey and dropped to 15th position in the ranking.
In the indicator referring to world exports of manufacturing goods, the share of Brazilian participation grew from 0.77% in 2020 to 0.81% in 2021, according to the CNI estimate. However, the increase should not be enough to increase or maintain the country’s position in the rankings, which should cause Brazil to lose one position and move from 30th to 31st, causing Indonesia to lose space.
“To reverse this trajectory of loss of participation in industrial goods exports, we need a national foreign trade strategy that addresses the old challenges of competitiveness, such as bureaucracy and tax residues in exports, while at the same time expanding our networks of trade agreements. to avoid double taxation with strategic partners,” said Constanza Negri, International Trade and Integration Manager
Despite improving export performance, Brazil lost position
As for Brazil’s share of world manufacturing exports, the increase estimated by CNI should not be enough to maintain or better position the country in the world rankings.
“Despite the increase, the percentage is lower than the percentage recorded before the Covid-19 pandemic and we cannot say that the country will be able to reverse the downward trend that started in 2012,” explains Constanza Negri.
According to the study, world exports fell by 5.3% in 2020, and the CNI estimate points to an increase of 20.4% in 2021. In Brazil, the decline in exports in 2020 represents more than double the global average (12.6 %) and for 2021 it is estimated to grow by 26.3%, above the global average. Given the performance of Brazil and its 11 major trading partners, in addition to Brazil, China, Argentina and the Netherlands, their respective stocks should see a slight rise – unlike any other country, which should experience a decline.
It is estimated that South Korea, Germany and Japan will record the largest losses in participation between 2020 and 2021, taking into account Brazil’s evaluated trading partners. Still, the latter two countries should remain in second and fourth place respectively in the rankings of the world’s largest exporters. As for South Korea, the prediction is that it will lose two positions in the ranking, bringing the country to 8th place.
Brazil’s share of world production is lowest since 1990
With the Brazilian participation in world production in the manufacturing sector falling from 1.31% to 1.28%, the country occupies the smallest share since 1990 and maintains the downward trend since 1996. Brazil remained among the 10 largest until 2014 industrial producers in the world, but with the recession from 2014 to 2016 and the devaluation of the real, it lost positions to Mexico and Indonesia; in 2018, it was overtaken by Taiwan and Russia; and in the most recent data, in 2021, it lost ground to Turkey.
In the analysis of Brazil and the main trading partners, China and the United States recorded the best performances. Between 2020 and 2021, the US share of global manufacturing value added grew from 16.59% to 16.76%.
Regarding the loss of participation between 2020 and 2021, in the case of the added value of the manufacturing industry, Japan and Germany recorded the highest figures. However, both maintained the third and fourth position in the world rankings respectively.
The survey also points out that South Korea was overtaken by India in the world rankings and dropped to sixth place. In 2021, South Korea’s industrial production fell by 2.32%, while India saw an increase of 1.51%, according to a British estimate. The Indian share grew from 3.11% in 2020 to 3.16% in 2021.
Of the trading partners analysed, China continues to perform best
Of Brazil’s 11 major trading partners, China performed best in 2021 in both manufacturing and global manufacturing exports. In terms of the share of world exports of manufacturing goods, the country recorded an increase from 17.10% in 2020 to 18.43% in 2021, according to estimates by CNI, leading the ranking. In terms of participation in the value-added of the global manufacturing industry, China experienced an increase from 30.08% to 30.45% between 2020 and 2021.
With information from the CNI