Brazil - Germany Trade 2023 Whole Year: Deficit & Tech-for-Resource

Key Market Takeaways: Brazil - Germany Trade

The bilateral trade relationship between Brazil and Germany is marked by a persistent deficit and volatile growth trends in 2023.

• Economic Pulse: Brazil ran a $7.98B trade deficit with Germany ($13.62B imports vs. $5.64B exports), reflecting heavy reliance on German industrial goods amid uneven export performance.
• Exchange Structure: Brazil - Germany trade statistics reveal a resource-for-tech dynamic—Brazil supplies coffee, ores, and animal feed (54.56% of exports), while Germany dominates with machinery, pharmaceuticals, and vehicles (46.78% of imports).
• Strategic Interdependence: Highly complementary but imbalanced, with Germany holding the high-value position in manufactured goods and Brazil locked in commodity exports.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Brazil-Germany Trade Trend in Whole Year 2023

Brazil Export Performance: Shipments to Germany

• Total Volume: $5.64B in 2023.
• Growth Trend & Context:
  • YoY trends were predominantly negative, with 8 out of 12 months showing declines, including sharp drops in February (-21.51%), September (-23.27%), and November (-24.26%).
  • The only notable YoY gains were in January (+8.34%) and July (+15.13%).
• Key Volatility: March saw the highest MoM surge (+51.95%), while November recorded the steepest MoM drop (-17.65%).

Brazil Import Performance: Sourcing from Germany

• Total Volume: $13.62B in 2023.
• Growth Trend & Context:
  • YoY performance was mixed, with 5 months of growth (notably January +30.59% and March +41.09%) and 7 months of contraction, including April (-10.21%) and December (-10.34%).
• Key Volatility: March had the highest MoM jump (+41.41%), while April posted the steepest MoM decline (-29.18%).

Brazil - Germany Trade Balance & Market Dynamics

• Net Position: Brazil ran a trade deficit of $7.98B (Imports $13.62B > Exports $5.64B).
• Relationship Status: Heavy reliance on German imports, with exports failing to offset the imbalance. The deficit underscores Brazil’s net importer role in this trade relationship.

Brazil Import Trend from Germany 2023 Whole Year (Source: yTrade)**

Brazil Export Trend to Germany 2023 Whole Year (Source: yTrade)**

Get Historical Brazil Germany Trade Records

Brazil-Germany Top Trading Products in Whole Year 2023

Brazil Export Profile: What Does Brazil Sell to Germany

• Top Commodity: Coffee (HS 09) dominates at 19.42% of exports.
• Demand Driver: Germany imports raw materials (coffee, ores, animal feed) for industrial processing and consumer markets.
• Concentration: The top 3 exports (coffee, ores, animal feed) account for 54.56%, showing moderate concentration.

Brazil Import Profile: What Does Brazil Buy from Germany

• Top Commodity: Machinery (HS 84) leads at 24.11% of imports.
• Dependency Nature: Critical technology dependency, with machinery, pharmaceuticals, and vehicles comprising 46.78% of imports.

Brazil - Germany Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Brazil supplies raw materials (coffee, ores) while Germany provides high-value machinery and pharmaceuticals.
• Value Chain Position: Germany holds the higher value-add position, exporting complex manufactured goods (HS 84, 87, 90) versus Brazil’s commodity-heavy exports.

Import Analysis by Product: Germany to Brazil (Source: yTrade)

Export Analysis by Product: Brazil to Germany (Source: yTrade)

Check Detailed Brazil-Germany Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Brazil’s trade deficit with Germany is likely to persist in 2024, driven by continued demand for high-value German machinery and pharmaceuticals, while Brazilian commodity exports face volatile global prices. The sharp YoY declines in key export months suggest structural weaknesses in Brazil’s ability to scale shipments, despite Germany’s steady industrial appetite. However, opportunistic gains—like July’s 15.13% export surge—hint at potential recovery if Brazil stabilizes supply chains and secures long-term commodity contracts. Traders should brace for uneven performance, with Germany’s advanced manufacturing sector maintaining the upper hand.

Strategic Moves

• Diversify Export Markets: Brazil must reduce reliance on coffee and ores by promoting secondary exports like aerospace parts (HS 88) or processed foods (HS 16) to Germany, leveraging trade missions and tariff incentives.
• Lock in Tech Imports Strategically: Brazilian manufacturers should negotiate multi-year deals for German machinery (HS 84) to hedge against price volatility, while exploring joint ventures to localize production of critical components.
• Mitigate Currency and Logistics Risks: Exporters must hedge against BRL-EUR fluctuations and partner with European logistics firms to avoid repeat disruptions like the 29.18% MoM import drop in April 2023.

Frequently Asked Questions

How did Brazil - Germany trade perform in 2023 Whole Year?

Brazil's exports to Germany totaled $5.64B in 2023, with mostly negative YoY trends, while imports from Germany reached $13.62B, showing mixed growth.

What are the top exports from Brazil to Germany?

Brazil's top exports to Germany are coffee (HS 09), ores, and animal feed, accounting for 54.56% of total exports.

What does Brazil import from Germany?

Brazil primarily imports machinery (HS 84), pharmaceuticals, and vehicles from Germany, making up 46.78% of total imports.

What is the trade balance between Brazil and Germany?

Brazil recorded a trade deficit of $7.98B with Germany in 2023, reflecting higher imports of German goods compared to exports.