GDP from Agribusiness grows unexpected 7.9% in 2007
Valor Econômico - 03/20/2008
In the eve of a new renegotiation of the agricultural debts, estimated in R$ 40 billion (US$ 22.73 billion), the Brazilian Confederation of Agriculture and Livestock (CNA) announced the inauguration of a cycle of positive results in the Brazilian countryside. The GDP from agribusiness, which gathers all links of the sector, came as a surprise when it registered a nominal variation of 7.89% in 2007, the sales (GPV - Gross Production Value) in agribusiness grew 24% and the wealth generated in the countryside increased 0.7% its share in the total Brazilian GDP after three years of free fall. The good results may continue in 2008. (The) CNA estimates an increase of 5.8% in the agribusiness' GDP this year. The sector, which lost R$ 23.6 billion (US$ 9.4 billion) between 2004 and 2006, recovered the losses: there were additional R$ 48.2 billion (US$ 27.4 billion) compared to 2006, according to the joint research made by CNA/Center for Advanced Studies on Applied Economics (Cepea-USP). But the tranquility is conditioned to the new combination of "full" harvest, with no crop loss and high productivity; demand at high; and prices in the current levels. The GDP growth of agribusiness last year, which reached the historical record of R$ 611.8 billion (US$ 347.6 billion), was the second highest of the series started in 1995. It was only behind the 8.81% registered in 2002. The gross value of production of the agribusiness amounted to R$ 263.12 billion (US$ 149.5 billion) and the share in the global GDP jumped from 22.4% to 23.1% - the highest level is still the index of 25.7% registered in 2003.