Electronics sector exports fall 22% in July

After a period of growth due to the devaluation of the real, the exports of electrical and electronic products showed a drop of 22% in July, to $ 431,800,000, according to the Brazilian Association of electrical and Electronics Industry (Abinee). Compared to June, there was a reduction of 4.6% in sales in foreign markets. In the first seven months of the year, exports retreated 2.7%, from $ 3.37 billion from January to July 2015 to $ 3.28 billion in the same period in 2016.
In a statement, the President of Abinee, Humberto Barbato, stated that the setback in exports stems from the lack of confidence of the companies sell their products in foreign markets, given the instability of the real against the dollar – the average price increased from R$ in the first half to R$ 3.70 3.20 in July. Barbato said that the electronics industry is also affected by the volatility in pricing in the domestic market. "The industry cannot live with such currency instability", concludes.
A poll conducted in early August indicated that 24% of companies consulted already diminished projections for foreign sales in 2016, according to the new exchange rate level. The average expected reduction is of 35% in relation to the total estimated previously. According to the poll, 76% consumer electronics industries kept their projections for exports for this year, mainly because of contracts already signed. The permanence of the current exchange rate, however, will affect the decisions to 2017.
From January to July 2016, the deficit of the trade balance of the electrical and electronic products totaled $ 10.9 billion, 36% below the pointed in the first seven months of last year (US $ 17.08 billion).