FThe Brazillian Institute of Geography and Statistics reports that the economy of Brazil experienced an increase of .4 percent for the first quarter of 2018. This, Flavio Maluf says is compared to a snapshot of the economy taken over the last quarter of 2017.
Maluf, who is the president of Eucatex, goes on to explain that the growth, when compared to the first quarter of last year, is a full 1.2 percent and says that the engine that is driving this growth is the country’s agriculture sector. Despite this fact when examining the agriculture industry independently it becomes apparent that the start of the year has not been as productive for the industry as it was a year ago. Read more about Flavio at terra.com
The second quarter for the sector was also negatively affected by a strike on the part of truck drivers that began on May 21. Flavio Maluf explains that this action on the part of truck drivers has been impactful due to the fact that approximately one-fifth of the nation’s sugarcane harvest and one-third of the maize harvest takes place over the second quarter of the year.
Maluf explains the inability of these, and other products to circulate reaches further into the Brazillian economy than just the produce and trade sectors. The production of feed for animals has also been impacted which is expected to result in a lowered production of meat. Also, 61 percent of the nation’s coffee reaches harvest by the second quarter and this industry is suffering due to the trucker’s strike.
On the positive side of things, Maluf explains that the production of soybean, which is harvested mostly in the first quarter of the year, reached record numbers in 2018 at 119 tons.
Flavio Maluf concludes that the growth of Brazil’s gross national product that was experienced in the first quarter by way of increases seen with soybean was mostly eroded away by the losses that the agriculture sector endured with Maize. Maluf points out that this decline in the GDP had been predicted already. This is because the rise in the GDP between 2016 and 2017 was unusually high. Visit: https://pt.wikipedia.org/wiki/Fl%C3%A1vio_Maluf