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Newsletter of the National Confederation of Industry Year 3 Number 4 October/December 2013 www.cni.org.br
The value of input imports exceeded that of export revenues in manufacturing for the first time since the beginning of the series in 1997. As a result, the net export to output ratio fell from 0.9% in 2012 to -0.1% in
2013. In mining and quarrying, the indicator stood at 64.2% and contributed positively to general industry
(mining and quarrying and manufacturing) result, whose net export to output ratio totaled 4.5% in 2013, down by 1.3 percentage points from 2012.
The increasing share of imported industrial products in the domestic market is signaled by the import penetration ratio. In 2013, the indicator hit a record high since the beginning of the series in 1996
(22.3%). In the case of manufacturing, the indicator is slightly lower: 20.6%, but is also the highest figure in the series.
The export to output ratio for general industry, which reflects the importance of foreign markets as a destination for Brazilian industrial production, remained virtually unchanged in comparison to 2012 at 19.8%.
In % - current prices
*Estimates
19.8% Export to output ratio
22.3% Import penetration ratio
24.3
% Imported input share
4.5% Net export to output ratio
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19.8%
In 2013
Variation in 2013 from 2012 (percentage points)
The export to output ratio for general industry, which shows the importance of foreign markets for the output of the industrial sector, amounted to 19.8% in 2013, virtually the same level observed in 2012
(19.7%). As in 2012, however, the indicator would have fallen were it not for the depreciation in the Brazilian currency. Exports in dollars fell by 2%, but increased by 8% when measured in Brazilian currency.
The export to output ratio for mining and quarrying fell by 2 percentage points (p.p.) from 2012, totaling
68.3%. This reduction can be explained by the 22.1 percentage point drop in the indicator for the oil extraction sector from 2012 levels.
In manufacturing, the indicator rose from 15.7% to 16.1% between 2012 and 2013, also helped by the depreciation in the Brazilian currency. The
Other transport equipment sector deserves special mention, as it is up by 29.1 percentage points. This performance, however, is explained by alleged exports of oil platforms. The sectors for which a lower growth was observed are: Tobacco (+4.0 p.p.),
Leather and footwear (+2.3 p.p.), Pulp and Paper
(+1.9 p.p.) and Pharmaceuticals (+1.8 p.p.). Among those that experienced a reduction in the indicator, special mention should be made of Textiles (-5.5 p.p.),
Machinery and equipment (-2.9 p.p.), and Basic metals
(-1.9 p.p.).
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*General industry includes Mining and quarrying and Manufacturing.
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22.3%
In 2013
Variation in 2013 from 2012 (percentage points)
The import penetration ratio measures the share of imported goods in domestic consumption. In 2013, the indicator increased by 1.6 percentage points (p.p.) from 2012 and stood at 22.3%, the highest value of the indicator since the beginning of the series in 1996. It is worth mentioning that the depreciation in the domestic currency also contributed to pushing the indicator up.
Imports in dollars of industrial products grew by 7% – in
Brazilian currency, they rose by 18%.
Mining and quarrying posted growth of 4.4 p.p. in the import penetration ratio, driven by Mining of metal ores.
As for manufacturing, the coefficient stood at 20.6%, representing an increase of 1.3 p.p. from 2012. Special mention should be made of Other transport equipment
(indicator up by 14.3 p.p.), Pharmaceuticals (+6.2 p.p.),
Computers, electronics and opticals (+3.7 p.p.), and
Electrical equipment (+3.1 p.p.). These sectors are among those with the highest import penetration rates
(48.0%, 42.3%, 53.7% and 29.7%, respectively).
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*General industry includes Mining and quarrying and Manufacturing.
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24.3%
In 2013
Variation in 2013 from 2012 (percentage points) The imported input share, which measures the value share of imported inputs in the total value of inputs purchased by industry, amounted to 24.3% in 2013, up by 2.2 percentage points on a year-on-year basis.
The historical series, which began in 1997, shows a steady growth in the indicator since 2010, and the current percentage is the highest since the beginning of this series.
The imported input share for manufacturing stood at 24.9%, a 2.2 p.p. increase from 2012, while in mining and quarrying the indicator increased by 1.5 p.p., to 11%.
The greatest increases in the imported input share were recorded for Pharmaceuticals (+14.1%) and
Computers, electronics and opticals (+13.6%), which are also the sectors with the highest share of imported inputs (69.9% and 86.6%, respectively), followed by
Basic metals (45.2%) and Motor vehicles (34.4%).
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*General industry includes Mining and quarrying and Manufacturing.
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4.5%
In 2013
The net export to output ratio is the difference between the value of exports and that of imported inputs as a proportion of the production value. A positive indicator means that the value exported by industry is higher than that of imported inputs.
Variation in 2013 from 2012 (percentage points)
The net export to output ratio for general industry closed the year on the decline (-1.3%) and hit its lowest level since 1998, when it stood at 3.9%.
In mining and quarrying, the indicator of 64.2% fell by 2.5 points from 2012 as a result of the poor performance of oil exports. In manufacturing, for the first time since the beginning of the series in 1997, the indicator dropped below zero, to -0.1%. Overall, the export revenues generated by the Brazilian manufacturing industry are now lower than expenditures on imported inputs.
However, the result is different when broken down by sectors. Nine of the 21 sectors considered in the survey recorded a positive net export to output ratio. In this group, the following sectors deserve special mention:
Tobacco (64.1%), Other transport equipment (44.9%),
Pulp and Paper (16.0%), Leather and footwear (15.7%),
Food and beverages (15, 5%), and Basic Metals (8.4%).
In the other group of sectors with negative indicators, special mention should be made of Computers, electronics and opticals, with an indicator of -51.7%,
Printing and reproduction (-26.2%) and Refined petroleum and biofuel (-22.6% ). It is worth stressing that the indicators for the Textiles and Metal products went from positive to negative levels between 2012 and 2013.
*General industry includes Mining and quarrying and Manufacturing.
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SECTORS
GENERAL INDUSTRY**
MINING AND QUARRYING
Mining of coal
Extraction of crude petroleum and natural gas
Mining of metal ores
Mining of non-metal ores
MANUFACTURING
Food
Beverages
Tobacco
Textiles
Wearing apparel
Leather and footwear
Wood
Pulp and paper
Printing and reproduction
Refined petroleum products and biofuel
Chemicals
Pharmaceuticals
Rubber and plastic
Non-metallic minerals
Basic metals
Metal products
Computers, electronics and opticals
Electrical equipment
Machinery and equipment
Motor vehicles
Other transport equipment
Furniture
Other manufacturing
Source: Elaborated by FUNCEX, based on data from Secex/MDIC, IBGE and FGV.
* Estimates
** General industry includes Mining and quarrying and Manufacturing.
EXPORT TO OUTPUT RATIO
0.7
6.9
11.0
8.3
7.3
4.7
28.1
5.7
7.0
9.3
17.1
12.1
31.2
4.9
12.0
21.2
0.9
49.1
12.4
0.9
21.0
18.0
21.8
2011
18.6
76.7
2.0
84.6
83.9
10.0
14.0
0.9
9.6
11.1
9.7
7.7
5.4
31.6
7.6
7.3
12.2
19.8
14.4
36.0
5.2
14.4
21.7
1.2
62.7
17.8
1.0
21.5
17.8
22.7
2012*
19.7
70.3
0.0
77.9
76.7
10.8
15.7
0.7
8.0
10.4
11.5
7.5
6.3
29.7
6.7
7.3
12.6
16.9
15.7
65.1
5.2
14.7
22.0
1.6
66.7
12.3
1.1
23.8
18.7
24.6
2013*
19.8
68.3
0.0
55.8
85.2
12.7
16.1
IMPORT PENETRATION RATIO
3.2
20.8
26.1
31.4
12.2
5.5
16.0
9.8
44.0
22.1
32.6
16.8
32.5
3.2
27.6
3.3
3.4
1.2
17.0
7.1
7.5
2.1
7.6
2011
18.6
54.0
89.3
81.3
14.9
11.1
17.3
3.9
20.6
27.7
36.1
13.8
6.7
18.7
11.9
50.0
26.6
36.6
20.7
33.7
4.2
35.7
3.6
3.6
2.0
19.9
10.6
8.7
2.0
8.1
2012*
20.7
50.2
85.9
76.0
8.4
11.8
19.3
4.8
20.6
28.8
42.3
15.0
7.4
18.2
13.5
53.7
29.7
36.6
22.4
48.0
4.8
36.1
3.9
3.7
1.9
19.6
12.5
9.3
1.8
8.0
2013*
22.3
54.6
81.9
68.9
17.7
12.2
20.6
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SECTORS
GENERAL INDUSTRY**
MINING AND QUARRYING
Mining of non-metal ores, incl. coal
Extraction of crude petroleum and natural gas
Mining of metal ores
MANUFACTURING
Food and beverages
Tobacco
Textiles
Wearing apparel
Leather and footwear
Wood
Pulp and paper
Printing and reproduction
Refined petroleum products and biofuel
Chemicals
Pharmaceuticals
Rubber and plastic
Non-metallic minerals
Basic metals
Metal products
Computers, electronics and opticals
Electrical equipment
Machinery and equipment
Motor vehicles
Other transport equipment
Furniture and other manufacturing
IMPORTED INPUT SHARE
46.5
19.4
15.7
43.2
11.4
59.3
21.0
18.4
23.9
33.1
12.7
10.2
11.8
6.0
18.1
15.0
21.6
43.5
2011
20.3
9.8
10.3
11.3
7.8
20.8
4.3
2.5
26.0
55.8
21.0
14.5
43.8
13.0
73.0
24.5
20.8
31.1
32.5
15.1
12.1
12.9
5.8
18.3
18.1
26.3
44.2
2012*
22.1
9.5
9.9
10.9
7.2
22.7
4.3
3.1
27.9
69.9
22.9
15.2
45.2
13.1
86.6
25.8
22.1
34.4
31.6
15.9
13.4
13.5
6.2
18.2
22.7
29.7
46.7
2013*
24.3
11.0
11.8
13.1
7.5
24.9
5.2
3.4
30.1
NET EXPORT TO OUTPUT RATIO
-8.2
-3.6
-1.0
7.7
-0.4
-33.4
-3.7
6.2
-2.1
10.0
-0.6
-5.8
13.9
14.4
13.2
-17.2
-15.4
-15.4
2011
5.9
73.2
2.6
78.5
82.2
0.6
15.4
47.3
-2.2
-10.0
-4.1
0.1
10.9
0.8
-42.5
-3.0
7.5
-4.0
15.2
-1.3
-7.0
13.7
14.3
14.1
-20.7
-17.5
-15.6
2012*
5.8
66.7
3.4
71.9
75.2
0.9
15.8
60.4
2.1
-13.2
-5.3
0.8
8.4
-0.2
-51.7
-3.4
3.9
-4.7
44.9
-1.6
-7.7
15.7
15.0
16.0
-26.2
-22.6
-17.8
2013*
4.5
64.2
3.8
48.7
83.5
-0.1
15.5
64.1
-4.7
Source: Elaborated by FUNCEX, based on data from Secex/MDIC, IBGE and FGV.
Note: The value of imported inputs is calculated with estimates from the Input-Output matrix (the 2000 matrix for the years of 1996 to 2000 and the 2005 matrix, starting in 2003).
* Estimates
** General industry includes Mining and quarrying and Manufacturing.
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Methodological note:
The export to output ratio (current prices) measures the percentage of industry’s production that is exported. It is calculated by dividing the export value of industrial products by the value of industrial production.
The import penetration ratio (current prices) indicates the share of imported goods in domestic consumption of industrial products.
The imported input share (current prices) measures the share of imported inputs relative to total inputs used by industry.
The net export to output ratio (current prices) is the ratio of the trade balance (exports minus imports of inputs) and the value of industrial production.
The indicators are calculated for general industry, for mining and quarrying, for manufacturing, and for the respective sectors of activity, as defined by IBGE’s National Classification of
Economic Activities - CNAE version 2.0.
For further information, please visit: www.cni.org.br/coeficientesdeaberturacomercial
TRADE OPENNESS INDICATORS | Quarterly publication of the National Confederation of Industry - CNI | www.cni.org.br | Policy and Strategy Directorate -
DIRPE | Economic Policy Unit - PEC | Executive manager: Flávio Castelo Branco | Research & Competitiveness Unit - GPC | Executive manager: Renato da
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Document prepared on March 17, 2014.
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