Brazil - Germany Trade 2023 Q3: Deficit Deepens
Key Market Takeaways: Brazil - Germany Trade
The bilateral trade relationship between Brazil and Germany deteriorated in Q3 2023, marked by declining exports and widening asymmetry.
- Deficit Deepens: Brazil posted a $2.22B trade deficit with Germany, as imports ($3.63B) far outpaced exports ($1.41B). Both flows contracted YoY, signaling weakening demand.
- Resource-for-Tech Exchange: Brazil - Germany trade statistics reveal a lopsided dynamic: iron ore (22% of exports) fuels German industry, while machinery (23% of imports) dominates Brazil’s purchases.
- Asymmetric Interdependence: Germany holds the high-value position, supplying critical tech and pharmaceuticals, while Brazil remains a commodity-dependent partner.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Brazil-Germany Trade Trend in Q3 2023
Brazil Export Performance: Shipments to Germany
- Total Volume: Brazil exported $1.41B worth of goods to Germany in Q3 2023.
- Growth Trend & Context: Exports declined sharply YoY, with September posting a -23.27% drop. The trend worsened monthly, with a -12.24% MoM contraction in September.
- Key Volatility: August saw a minor rebound (+2.57% MoM), but September’s -12.24% MoM drop was the steepest.
Brazil Import Performance: Sourcing from Germany
- Total Volume: Brazil imported $3.63B worth of goods from Germany in Q3 2023.
- Growth Trend & Context: Imports fell YoY, with September down -16.17%. The MoM trend was volatile, peaking at +13.14% in July before plunging -17.89% in September.
- Key Volatility: July had the highest MoM growth (+13.14%), while September saw the sharpest decline (-17.89%).
Brazil - Germany Trade Balance & Market Dynamics
- Net Position: Brazil ran a trade deficit of $2.22B (Imports $3.63B - Exports $1.41B) with Germany in Q3.
- Relationship Status: Brazil remains heavily dependent on German imports, with exports failing to offset the deficit. The widening gap suggests deepening trade asymmetry.
Brazil Import Trend from Germany 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 1.30B | 13.14% | 7.36% |
| Aug | 1.28B | -2.06% | -6.0% |
| Sep | 1.05B | -17.89% | -16.17% |
| Total | 3.63B | - | - |
Brazil Export Trend to Germany 2023 Q3 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jul | 482.40M | -6.06% | 15.13% |
| Aug | 494.78M | 2.57% | -3.04% |
| Sep | 434.20M | -12.24% | -23.27% |
| Total | 1.41B | - | - |
Get Historical Brazil Germany Trade Records
Brazil-Germany Top Trading Products in Q3 2023
Brazil Export Profile: What Does Brazil Sell to Germany
- Top Commodity: Iron ore (HS Code 26) dominates exports, accounting for 22.10% of total value.
- Demand Driver: Germany relies on Brazilian iron ore for steel production, a key input for its automotive and machinery sectors.
- Concentration: The top 3 exports (iron ore, animal feed, and coffee) make up 55.51% of total exports, indicating moderate concentration.
Brazil Import Profile: What Does Brazil Buy from Germany
- Top Commodity: Machinery (HS Code 84) leads imports at 23.05% share, reflecting Brazil's reliance on German industrial equipment.
- Dependency Nature: High-tech imports (machinery, pharmaceuticals, electrical equipment) suggest critical technology dependency for Brazil's manufacturing and healthcare sectors.
Brazil - Germany Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity—Brazil supplies raw materials (iron ore, coffee) while Germany provides advanced machinery and pharmaceuticals.
- Value Chain Position: Germany holds the higher value-add position, exporting complex manufactured goods, while Brazil primarily supplies commodities.
Import Analysis by Product: Germany to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 836.06M | 23.05% |
| 29 | 461.00M | 12.71% |
| 87 | 370.95M | 10.23% |
| 30 | 362.26M | 9.99% |
| 85 | 336.26M | 9.27% |
| 90 | 233.55M | 6.44% |
| 73 | 173.22M | 4.77% |
| 39 | 150.26M | 4.14% |
| 38 | 122.20M | 3.37% |
| 31 | 87.74M | 2.42% |
Export Analysis by Product: Brazil to Germany (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 26 | 311.95M | 22.10% |
| 23 | 248.43M | 17.60% |
| 09 | 223.11M | 15.81% |
| 84 | 172.40M | 12.22% |
| 72 | 53.14M | 3.77% |
| 28 | 48.57M | 3.44% |
| 71 | 38.85M | 2.75% |
| 85 | 29.95M | 2.12% |
| 24 | 27.41M | 1.94% |
| 27 | 21.61M | 1.53% |
Check Detailed Brazil-Germany Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
The Brazil-Germany trade relationship is likely to face continued volatility in Q4 2023, with the deficit widening further due to persistent declines in Brazilian exports and Germany’s weakening demand for commodities. The structural imbalance—Brazil’s reliance on German high-tech imports versus Germany’s selective demand for raw materials—will sustain the asymmetry. However, if global steel demand rebounds, iron ore exports could stabilize, offering a partial offset. Traders should prepare for a period of consolidation, with potential upside tied to commodity price fluctuations.
Strategic Moves
- Diversify Export Markets: Brazilian exporters must reduce dependence on Germany by targeting emerging EU markets for iron ore and agricultural goods, mitigating demand volatility.
- Lock in Tech Import Contracts: Importers should negotiate long-term supply agreements for German machinery and pharmaceuticals to hedge against price surges and supply chain disruptions.
- Invest in Value-Added Exports: Brazil should prioritize upgrading its export profile—processing raw materials like coffee and iron ore into higher-margin products to capture more value from German demand.
Frequently Asked Questions
How did Brazil - Germany trade perform in 2023 Q3?
Brazil's exports to Germany fell sharply (-23.27% YoY) to $1.41B, while imports from Germany dropped (-16.17% YoY) to $3.63B, reflecting a declining trade trend in Q3 2023.
What are the top exports from Brazil to Germany?
The top exports are iron ore (HS Code 26), animal feed, and coffee, which together account for 55.51% of Brazil's total exports to Germany.
What does Brazil import from Germany?
Brazil primarily imports machinery (HS Code 84), pharmaceuticals, and electrical equipment from Germany, highlighting its reliance on high-tech industrial goods.
What is the trade balance between Brazil and Germany?
Brazil recorded a trade deficit of $2.22B with Germany in Q3 2023, with the gap widening due to declining exports and volatile imports.
Brazil - Germany Trade 2023 Q2: Persistent Deficit
Brazil's trade deficit with Germany hit $1.87B in Q2 2023, as exports declined. Explore Brazil Germany trade trends and top trading products via yTrade data.
Brazil - Germany Trade 2023 Q4: Persistent Deficit & Volatile Trends
Brazil's trade deficit with Germany hit $1.77B in Q4 2023, with volatile export swings. Explore Brazil-Germany trade trends and top trading products via yTrade data.
