Brazil, Colombia Suffer Most From Industrial Decline - Steel Group
13 Settembre 2011 - 1:11AM
Dow Jones News
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
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