Brazil - Germany Trade 2024 Q1: Persistent Deficit

Key Market Takeaways: Brazil - Germany Trade

The bilateral trade relationship between Brazil and Germany remains structurally imbalanced, with Brazil running a persistent deficit in Q1 2024.

• Economic Pulse: Brazil’s trade deficit with Germany hit $2.05B (Imports: $3.37B > Exports: $1.32B), with mixed YoY growth—exports declined while imports showed volatility.
• Exchange Structure: Brazil - Germany trade statistics reveal a resource-for-tech complementarity: Brazil supplies coffee and raw materials (57% of exports), while Germany dominates with machinery and pharmaceuticals (26.67% of imports).
• Strategic Interdependence: Germany holds the high-value position, supplying critical industrial and medical inputs, while Brazil’s role as a commodity exporter underscores limited diversification.

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

Brazil-Germany Trade Trend in Q1 2024

Brazil Export Performance: Shipments to Germany

• Total Volume: $1.32B in Q1 2024.
• Growth Trend & Context:
  • YoY declines persisted in January (-15.95%) and March (-17.42%), offset by a 15.44% rebound in February. No clear recovery trend.
  • Key Volatility: March saw the highest MoM growth (+8.7%) but remained deep in negative YoY territory.

Brazil Import Performance: Sourcing from Germany

• Total Volume: $3.37B in Q1 2024.
• Growth Trend & Context:
  • Mixed YoY performance: February (+7.16%) countered declines in January (-4.58%) and March (-15.1%).
  • Key Volatility: March had the highest MoM jump (+12.03%) despite YoY contraction.

Brazil - Germany Trade Balance & Market Dynamics

• Net Position: Brazil ran a $2.05B trade deficit with Germany (Imports $3.37B > Exports $1.32B).
• Relationship Status: Heavy reliance on German imports, with exports failing to close the gap. Structural deficit persists.

Brazil Import Trend from Germany 2024 Q1 (Source: yTrade)**

Brazil Export Trend to Germany 2024 Q1 (Source: yTrade)**

Get Historical Brazil Germany Trade Records

Brazil-Germany Top Trading Products in Q1 2024

Brazil Export Profile: What Does Brazil Sell to Germany

• Top Commodity: Rank #1 export is HS Code 09 (Coffee, tea, spices) at 25.22% of total exports to Germany.
• Demand Driver: Germany imports these primarily for consumer market consumption, indicating strong demand for Brazilian agricultural products.
• Concentration: The top 3 exports (HS 09, 26, 23) account for 57.25%, showing moderate concentration in raw materials and food products.

Brazil Import Profile: What Does Brazil Buy from Germany

• Top Commodity: Rank #1 import is HS Code 84 (Machinery, nuclear reactors) at 26.67% of total imports from Germany.
• Dependency Nature: Brazil relies heavily on German machinery and pharmaceuticals (HS 30), reflecting critical technology dependency for industrial and medical sectors.

Brazil - Germany Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Brazil exports raw materials (coffee, ores) while importing high-value machinery and pharmaceuticals from Germany.
• 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)

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

Check Detailed Brazil-Germany Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast for Brazil-Germany Trade

The Brazil-Germany trade relationship is likely to remain volatile in the near term, with Brazil’s persistent deficit and uneven export performance signaling continued headwinds. While German demand for Brazilian agricultural goods (HS 09) remains stable, the lack of export diversification and heavy reliance on commodity prices leaves Brazil vulnerable to market fluctuations. Conversely, Brazil’s dependency on German machinery (HS 84) and pharmaceuticals (HS 30) will sustain import volumes, reinforcing the structural trade imbalance. Without intervention, the deficit may widen further, especially if commodity prices soften or German industrial demand weakens.

Strategic Moves for Traders & Policymakers

• Diversify Export Markets: Brazilian exporters must reduce reliance on Germany by targeting other EU markets for agricultural and mineral products, mitigating volatility risks.
• Secure Long-Term Supply Contracts: Importers of German machinery and pharmaceuticals should lock in pricing and delivery terms to hedge against potential supply chain disruptions or cost escalations.
• Invest in Value-Added Exports: Brazil should prioritize upgrading its export profile by fostering domestic manufacturing capabilities, particularly in sectors like processed foods or renewable energy components, to capture higher margins and reduce dependency on raw material sales.

Frequently Asked Questions

How did Brazil - Germany trade perform in 2024 Q1?

Brazil's exports to Germany totaled $1.32B, with mixed YoY growth, while imports from Germany reached $3.37B, showing a similar uneven trend.

What are the top exports from Brazil to Germany?

Brazil's top exports to Germany are Coffee, tea, spices (HS 09), along with ores (HS 26) and food products (HS 23), accounting for 57.25% of total exports.

What does Brazil import from Germany?

Brazil primarily imports Machinery and nuclear reactors (HS 84) and pharmaceuticals (HS 30) from Germany, reflecting a reliance on advanced technology and medical supplies.

What is the trade balance between Brazil and Germany?

Brazil recorded a $2.05B trade deficit with Germany in Q1 2024, driven by higher imports of machinery and pharmaceuticals compared to exports of raw materials.