The Brazilian GDP in the first quarter of 2021 exceeded analysts’ expectations. The economy rose 1.2% compared to the fourth quarter of last year in comparison with an expected an increase of 0.7%. In relation to the same three months of 2020, there was a 1% growth, when analysts projected 0.5%.
One of the reasons for this positive performance of the Brazilian GDP is the substantial increase in the prices of agricultural and mineral commodities, which represents a great portion of the Brazilian exports. Prices are on the rise due to the recovery of the world economy, and the slow overcoming of the Covid pandemic in the United States, Europe, and China.
Regarding the agricultural market, soybean has shown outstanding results, with an expected record harvest. Soybean exports reached the mark of 16,403 million tons, representing an addition of 16.27% over the 14.108 million sold in May 2020. Anchored in the good outcome of soybean, tobacco, rice and other cultures, the Agricultural Gross Domestic Product achieved excellent performance, totaling R$ 208.8 billion.
According to the Brazilian Institute of Statistics and Geography (Instituto Brasileiro de Geografia e Estatística – IBGE), agricultural GDP growth was 5.7%, being the sector in the spotlight, in contrast to the last quarter of 2020. It is noteworthy that the agricultural performance had been the only sector that grew in 2020 and currently maintains its evolution, contributing to the positive result of the Brazilian GDP in 2021.
Given all above, it is reasonable to conclude that Brazilian agriculture is extremely resilient. Even in through hardship seen during the last harvest, which included a world in a crisis, climatic adversities, delayed harvesting, the sector played a main role to strengthen the national economy and tends to maintain its performance leadership in the coming months, despite a smaller second harvest and the anticipation in regards to the resolution of the pandemic, need for restrictive measures and the vaccination calendar.
