Brazil agricultural output will rise again this year

Subject

Agricultural performance.

Significance

Brazilian agriculture registered high production levels and trade surpluses in 2018, with soya exports alone reaching over 33 billion dollars. Improved results in agriculture helped to keep inflation rates low, although still higher than in 2017. Political support for agribusiness in the new government reinforces the positive outlook for the sector overall.

Impacts

• The trend of Brazilian specialisation in primary commodities is likely to continue.
• Agribusiness will contribute to Brazil’s economic recovery, but at a slow pace.
• International conditions will pose various risks to the sector.