Currency instability affects Brazilian shoe exports

Brazil
Published:  12 October, 2016

Brazilian shoe exports registered a slight increase so far in 2016 compared with the previous year, but the near future remains unclear due to macroeconomic uncertainty.

Figures from Abicalçados, the Brazilian Shoe Manufacturers Association, show that a total of 10.4 million pairs of footwear were exported in September 2016, generating US$84.7 million in value. This represents a 3.6% increase in volume year-on-year, but lower than the previous month of August 2016 (-3.4%).

Between January and September 2016, a total of 87 million pairs have been exported, meaning a 1.1% increase in value and +0.5% in volume compared with the same period in 2015.

“We were expecting a better performance since the beginning of 2016, but currency instability caused by the economic and political crisis, together with macroeconomic uncertainty, have led the figures to be negative in the first half of the year”, said Heitor Klein, Executive President, Abicalçados. “As the situation becomes better defined, we can get a glimpse of the results being a little superior to 2015”, he added.

According to Klein, much of the positive results can be attributed to higher demand in important markets such as the U.S. and Argentina. The latter opened up after a series of government led protectionist measures between 2012 and 2015.

comments powered by Disqus