Brazil - Germany Trade 2023 Q2: Persistent Deficit
Key Market Takeaways: Brazil - Germany Trade
The bilateral trade relationship between Brazil and Germany reflects a persistent trade deficit for Brazil in Q2 2023, with exports declining and imports showing mixed recovery.
- Economic Pulse: Brazil’s trade deficit with Germany hit $1.87B, as imports ($3.30B) far outpaced exports ($1.43B). Export volumes continued their YoY decline, while imports showed partial recovery.
- Exchange Structure: Brazil - Germany trade statistics reveal a resource-for-tech dynamic—Brazil supplies food waste, ores, and coffee (66% of exports), while Germany dominates with machinery, pharmaceuticals, and high-value manufactured goods.
- Strategic Interdependence: The partnership remains highly complementary but imbalanced, with Germany holding the upper hand in value-added production.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Brazil-Germany Trade Trend in Q2 2023
Brazil Export Performance: Shipments to Germany
- Total Volume: $1.43B in Q2 2023.
- Growth Trend & Context: YoY decline persisted across all months, with June showing the sharpest drop (-14.52%). No mitigating news to explain the contraction.
- Key Volatility: June saw a 14.69% MoM rebound after consecutive declines, though YoY performance remained weak.
Brazil Import Performance: Sourcing from Germany
- Total Volume: $3.30B in Q2 2023.
- Growth Trend & Context: Mixed YoY trends—June imports grew 3.02% YoY, offsetting earlier declines. No news to contextualize fluctuations.
- Key Volatility: April recorded a steep 29.18% MoM drop, followed by a 17.55% recovery in May.
Brazil - Germany Trade Balance & Market Dynamics
- Net Position: Trade deficit of $1.87B (Imports exceeded exports).
- Relationship Status: Brazil remains heavily dependent on German imports, with exports failing to offset the imbalance.
Brazil Import Trend from Germany 2023 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 987.67M | -29.18% | -10.21% |
| May | 1.16B | 17.55% | -2.39% |
| Jun | 1.15B | -0.78% | 3.02% |
| Total | 3.30B | - | - |
Brazil Export Trend to Germany 2023 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 469.40M | -15.96% | -10.61% |
| May | 447.74M | -4.61% | -13.96% |
| Jun | 513.51M | 14.69% | -14.52% |
| Total | 1.43B | - | - |
Get Historical Brazil Germany Trade Records
Brazil-Germany Top Trading Products in Q2 2023
Brazil Export Profile: What Does Brazil Sell to Germany
- Top Commodity: Rank #1 export is HS Code 23 (Residues and waste from the food industries) at 23.81% of total exports to Germany.
- Demand Driver: Germany uses these for industrial processing, likely in animal feed or biofuel production.
- Concentration: The top 4 exports (HS Codes 23, 09, 84, 26) account for 66.14% of total exports, showing high concentration.
Brazil Import Profile: What Does Brazil Buy from Germany
- Top Commodity: Rank #1 import is HS Code 84 (Nuclear reactors, boilers, machinery) at 23.53% of total imports from Germany.
- Dependency Nature: Critical technology dependency, as machinery and pharmaceuticals (HS Codes 84, 30, 29) dominate imports.
Brazil - Germany Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity. Brazil exports raw materials (food waste, ores, coffee) while importing high-value machinery and pharmaceuticals.
- Value Chain Position: Germany holds the higher value-add position, supplying advanced manufactured goods, while Brazil provides commodities.
Import Analysis by Product: Germany to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 776.68M | 23.53% |
| 30 | 354.43M | 10.74% |
| 29 | 348.80M | 10.57% |
| 87 | 333.64M | 10.11% |
| 85 | 252.72M | 7.66% |
| 90 | 209.63M | 6.35% |
| 39 | 153.31M | 4.64% |
| 31 | 135.11M | 4.09% |
| 38 | 125.81M | 3.81% |
| 73 | 111.98M | 3.39% |
Export Analysis by Product: Brazil to Germany (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 23 | 340.64M | 23.81% |
| 09 | 215.87M | 15.09% |
| 84 | 199.67M | 13.96% |
| 26 | 190.01M | 13.28% |
| 28 | 51.96M | 3.63% |
| 71 | 46.34M | 3.24% |
| 85 | 36.14M | 2.53% |
| 87 | 31.03M | 2.17% |
| 72 | 29.68M | 2.07% |
| 27 | 29.01M | 2.03% |
Check Detailed Brazil-Germany Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
The Brazil-Germany trade deficit is likely to persist in Q3 2023, driven by Brazil’s heavy reliance on German machinery and pharmaceuticals (HS Codes 84, 30, 29) and weak export recovery in key commodities like food waste and ores. While German demand for Brazilian raw materials may stabilize, the structural imbalance—where Brazil supplies low-value inputs and imports high-tech goods—will continue to pressure the trade balance. Exporters should brace for prolonged volatility, particularly in commodity prices, while importers may face tighter margins due to elevated machinery costs.
Strategic Moves
- Diversify Export Markets: Brazilian exporters must reduce dependence on Germany by targeting alternative EU markets for commodities like coffee (HS Code 09) and ores (HS Code 26), where demand remains resilient.
- Lock in Long-Term Tech Contracts: Importers of German machinery (HS Code 84) should negotiate multi-year supply agreements to hedge against price surges and potential supply chain disruptions.
- Invest in Value-Added Processing: Brazil should prioritize upgrading its industrial capacity to transform raw exports (e.g., food waste into biofuels) and capture higher margins, reducing the tech gap with Germany.
Frequently Asked Questions
How did Brazil - Germany trade perform in 2023 Q2?
Brazil's exports to Germany declined YoY to $1.43B, while imports rose to $3.30B, resulting in a $1.87B trade deficit.
What are the top exports from Brazil to Germany?
Top exports include HS Code 23 (food industry residues), HS Code 09 (coffee), HS Code 84 (machinery), and HS Code 26 (ores), accounting for 66.14% of total exports.
What does Brazil import from Germany?
Brazil primarily imports HS Code 84 (nuclear reactors, machinery), HS Code 30 (pharmaceuticals), and HS Code 29 (organic chemicals) from Germany.
What is the trade balance between Brazil and Germany?
Brazil recorded a $1.87B trade deficit with Germany in Q2 2023, driven by higher imports of advanced manufactured goods.
Brazil - Germany Trade 2023 Whole Year: Deficit & Tech-for-Resource
Brazil's $7.98B trade deficit with Germany in 2023 highlights a resource-for-tech exchange. Explore Brazil Germany trade trends and top trading products via yTrade data.
Brazil - Germany Trade 2023 Q3: Deficit Deepens
Brazil's trade deficit with Germany hit $2.22B in Q3 2023, driven by iron ore exports and machinery imports. Explore Brazil-Germany trade trends and top products via yTrade data.
