Brazil and Colombia are the Latin American countries suffering most from deindustrialization as local currency appreciation has led to a constant influx of manufactured products, particularly from China, a Latin American steel group said Monday.

"Industry's losing space in the Latin American economy," said executives from the Latin American Iron and Steel Institute Ilafa and Brazilian Steel Institute IABr at a presentation in Sao Paulo of a study commissioned by Ilafa. "That's also reflected in lower exports of manufactured goods and a trend for a bigger proportion of unprocessed goods exports."

Latin America's trade balance with China, which showed a deficit of $17.4 billion in 2005, exploded to $57.5 billion in 2010, according to the Ilafa study. The metalworking sector in Latin America is one of the worst hit as more than 60% of the imports of Chinese goods into the Latin American region contain metal or steel, the study said.

In turn, Brazil's exports to China are mainly of unprocessed raw materials, including iron ore, the study said.

Mexico and Argentina are also suffering from deindustrialization, although to a lesser extent than Brazil and Colombia, according to Ilafa.

In Brazil, the participation of manufacturing industry fell to 15.8% of gross domestic product in 2010 from 19.2% in 2004, while the participation of manufactured goods in the country's exports fell to 39% of total exports in 2010 from 55% in 2005, the study said.

-By Diana Kinch, Dow Jones Newswires; 55-21-2586-6086; diana.kinch@dowjones.com

Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Giu 2024 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Lug 2023 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal