Led by Brazil Mercosur’s Exports Grow 20% and Imports 18%

    Imports of goods by Africa and the Middle East grew 18% in nominal terms last year. Africa spent US$ 248 billion in foreign purchases in 2005, growth of 17% over 2004, and the Middle East purchased US$ 318 billion, 19% more.

    Together, the countries of the region consume US$ 566 billion in products made by other nations, according to figures in the World Trade Report, disclosed early this week by the World Trade Organization. (WTO).

    The percentage was well above the general growth of nominal global imports, which was 13%. The main reason for the increase in purchases was high oil prices, produced and exported by the region.

    "The countries that exported fuel and other products of extractive industries increased their imports substantially," according to the WTO report. Africa and the Middle East presented growth of 32.5% in exports.

    Africa had revenues of US$ 296 billion with foreign sales, 29% more than in 2004, and the Middle East, US$ 529 billion, 36% more.

    "The expansion in exports favored the growth of imports," explained the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby. According to him, this increase in income generated by oil made the governments of the countries invest in infrastructure and an improvement of quality of life for the population.

    According to the vice president at the Brazilian Foreign Trade Association (AEB), José Augusto de Castro, both regions should continue importing great volumes while the price of oil is high. According to Castro, at the same time in which they are harmful to the development of the global economy, high commodity prices favor Brazil.

    "These countries that produce oil currently require Brazilian products," stated the vice president at the AEB. Brazil is also less sensitive to international oil price quotations, as the country is almost self-sufficient in the sector.

    The increase in commodity prices, however, was one of the factors that did not permit greater growth of global trade in 2005, according to the WTO report. High oil prices mean greater energy costs for countries, due to fuel prices, and this causes inflation.

    It is consequentially necessary to increase interest rates, which reduces the level of industrial activity and affects the performance of economies. Although analysts consider the 13% satisfactory for the growth of global trade, it was much lower than the total in 2004, when growth was over 20%.

    "The main developed countries that are importers of oil, the European Union (EU), the United States and Japan, registered strong deceleration in the growth of their imports. Chinese imports also grew less than in the same period in the previous year, despite the strength of their economy," according to the WTO report.

    EU imports grew 8%, against 20% in the previous year, in the case of the US, growth was 14% in 2005, against 17% in 2004, in Japan, imports grew 14% against 19% in the previous period and in China the growth was 18%, against 36% in 2004.

    However, global exports exceeded US$ 10 trillion. "The percentage of growth of exports last year was very good," stated Castro. In the case of the United States, according to him, no growth was expected, or lower growth was expected due to the internal deficit and to the current account deficit that the country has and to the costs it is having with wars.

    Mercosur

    To most of the countries in South America, global trade was favorable in 2005. The Mercosur led by Brazil presented growth of 20% in exports, according to the WTO. Together, the countries in the bloc exported US$ 163 billion.

    The region’s imports grew 18% and reached US$ 113 billion. These figures, both for the Mercosur and the Middle East and Africa, refer only to the trade of products and do not include services.

    For 2006

    In spite of high oil prices, the Organization for Economic Co-operation and Development (OECD) released a report in which it forecasts a positive panorama for the world economy this year. According to the document, disclosed by the Institute for Studies in aid of Industrial Development (Iedi), the countries that are members of the organization, a total of 30, among them the United States, France and Japan, should present growth of 3.1% in their Gross Domestic Product (GDP) in 2006.

    Anba – www.anba.com.br

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Truck in Brazil

    2010: Brazil’s Exports to Grow 12% and Imports 24%

    Exports from Brazil should reach around US$ 170.7 billion in 2010, with growth of ...

    Brazil's Atlantic forest

    Brazil Converts US$ 21 Million Debt to US into Project to Protect Forests

    Brazil and the United States signed an agreement in which Brazil will use US$ ...

    Venezuelan President Hugo Chavez

    The Brazil-US Ethanol Alliance Aims to End Mercosur and Chávez Dreams

    President George W. Bush has embarked on a five-nation tour of Latin America – ...

    Brazil’s Petrobras Gets a BB- from Fitch

    Fitch Ratings has affirmed the international foreign currency and Brazilian national scale ratings of ...

    LETTERS

    There is a renewed interest in medicinal plants all over the world. The World ...

    So, This Is Lula?

    Everything Lula has done confirms his intention to live with the free market reforms ...

    Brazil's College FAAP

    Arabs and Jews Mix and Mingle in Brazilian College

    Brazil's Fundação Armando Àlvares Penteado (FAAP) exchange course agreement, started in  2002, had not ...

    Americans March All Over U.S. in Support of Brazil’s Landless

    On April 22, demonstrations at Brazilian consulates around the United States, spearheaded by a ...

    Brazil’s Growth Recipe: Exports Up and Inflation Down

    Brazil’s Institute of Applied Economic Policy (Ipea) released its Conjunctural Bulletin #68, with revised ...

    Brazil Pays Off US$ 3 Billion of Foreign Debt

    Brazilian stocks moved tentatively higher, as investors refrained from significant buying prior to the ...