Brazil - Italy Trade 2023 Q4: Deficit & Tech Exchange
Key Market Takeaways: Brazil - Italy Trade
The bilateral trade relationship between Brazil and Italy showed mixed performance with persistent volatility in Q4 2023.
- Economic Pulse: Brazil ran a $420M deficit with Italy, importing $1.43B (mixed YoY growth) while exports fell to $1.01B (sharpest December drop: -15.92% YoY).
- Exchange Structure: Brazil - Italy trade statistics reveal a resource-for-tech complementarity—Brazil supplies coffee and minerals (44.5% of exports), while Italy dominates with machinery and pharmaceuticals (29.7% of imports).
- Strategic Interdependence: Italy holds the higher value-add position, but December’s export rebound hints at potential rebalancing in this lopsided partnership.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Brazil-Italy Trade Trend in Q4 2023
Brazil Export Performance: Shipments to Italy
- Total Volume: $1.01B in Q4 2023.
- Growth Trend & Context:
- YoY decline persisted, with December (-15.92%) marking the sharpest drop. November’s -1.73% was the least severe contraction.
- No mitigating news to explain the downturn.
- Key Volatility: October saw a 24.19% MoM surge, followed by a -3.85% correction in December.
Brazil Import Performance: Sourcing from Italy
- Total Volume: $1.43B in Q4 2023.
- Growth Trend & Context:
- Mixed YoY performance: December (+8.04%) offset November’s -9.81% slump.
- No news to contextualize fluctuations.
- Key Volatility: November’s -2.52% MoM dip contrasted with October’s 5.8% rise.
Brazil - Italy Trade Balance & Market Dynamics
- Net Position: $420M deficit for Brazil (Imports exceeded exports).
- Relationship Status: Brazil remains a net importer from Italy, though December’s export rebound suggests potential rebalancing.
Brazil Import Trend from Italy 2023 Q4 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Oct | 484.25M | 5.8% | 7.39% |
| Nov | 472.06M | -2.52% | -9.81% |
| Dec | 477.54M | 1.16% | 8.04% |
| Total | 1.43B | - | - |
Brazil Export Trend to Italy 2023 Q4 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Oct | 317.88M | 24.19% | -26.21% |
| Nov | 352.61M | 10.93% | -1.73% |
| Dec | 339.04M | -3.85% | -15.92% |
| Total | 1.01B | - | - |
Get Historical Brazil Italy Trade Records
Brazil-Italy Top Trading Products in Q4 2023
Brazil Export Profile: What Does Brazil Sell to Italy
- Top Commodity: Rank #1 export is HS Code 09 (Coffee, tea, spices) at 22.54% of total exports to Italy.
- Demand Driver: Italy buys these primarily for consumer market needs, indicating strong demand for Brazilian agricultural products.
- Concentration: The top two exports (HS Code 09 and 27) account for 44.49%, showing moderate concentration in energy (HS Code 27: Mineral fuels) and agricultural goods.
Brazil Import Profile: What Does Brazil Buy from Italy
- Top Commodity: Rank #1 import is HS Code 84 (Machinery, nuclear reactors) at 29.71% of total imports from Italy.
- Dependency Nature: Brazil relies on Italy for critical technology, particularly industrial machinery and pharmaceuticals (HS Code 30).
Brazil - Italy Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity—Brazil exports raw materials (coffee, minerals) and imports high-value machinery and pharmaceuticals.
- Value Chain Position: Italy holds the higher value-add position, supplying advanced manufactured goods, while Brazil provides commodities.
Import Analysis by Product: Italy to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 426.06M | 29.71% |
| 30 | 189.36M | 13.21% |
| 87 | 103.98M | 7.25% |
| 85 | 83.84M | 5.85% |
| 73 | 60.24M | 4.20% |
| 90 | 56.15M | 3.92% |
| 29 | 54.52M | 3.80% |
| 39 | 50.66M | 3.53% |
| 08 | 46.20M | 3.22% |
| 38 | 28.99M | 2.02% |
Export Analysis by Product: Brazil to Italy (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 09 | 227.51M | 22.54% |
| 27 | 221.59M | 21.95% |
| 47 | 100.78M | 9.98% |
| 23 | 59.85M | 5.93% |
| 84 | 53.92M | 5.34% |
| 72 | 42.78M | 4.24% |
| 02 | 38.44M | 3.81% |
| 44 | 34.18M | 3.39% |
| 41 | 32.31M | 3.20% |
| 76 | 25.70M | 2.55% |
Check Detailed Brazil-Italy Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
The Brazil-Italy trade relationship is expected to stabilize in Q1 2024, with modest recovery in Brazilian exports as Italy’s demand for agricultural commodities (HS Code 09) remains resilient. However, persistent volatility in mineral fuel exports (HS Code 27) and Brazil’s reliance on Italian machinery imports (HS Code 84) will likely sustain the trade deficit. December’s export rebound hints at potential rebalancing, but structural dependency on high-value Italian goods means Brazil must actively diversify its export mix to narrow the gap.
Strategic Moves
- Lock in Agri-Export Contracts: Brazilian coffee and spice exporters should secure long-term agreements with Italian buyers to stabilize revenue amid fluctuating demand.
- Diversify Import Sources: Brazilian industrial firms must reduce overreliance on Italian machinery by exploring competitive alternatives from Germany or Japan.
- Boost Value-Added Exports: Brazil should incentivize processed food and biofuels (beyond raw commodities) to capture higher margins in the Italian market.
Frequently Asked Questions
How did Brazil - Italy trade perform in 2023 Q4?
Brazil's exports to Italy totaled $1.01B in Q4 2023, showing a YoY decline, while imports from Italy reached $1.43B, with mixed YoY performance.
What are the top exports from Brazil to Italy?
Brazil's top exports to Italy are Coffee, tea, spices (HS Code 09) and Mineral fuels (HS Code 27), accounting for 44.49% of total exports.
What does Brazil import from Italy?
Brazil primarily imports Machinery and nuclear reactors (HS Code 84) and Pharmaceuticals (HS Code 30) from Italy, reflecting a reliance on advanced technology.
What is the trade balance between Brazil and Italy?
Brazil recorded a $420M trade deficit with Italy in Q4 2023, though December's export rebound hinted at potential rebalancing.
Brazil - Italy Trade 2023 Q3: Deficit Widens
Brazil's trade deficit with Italy hit $716.68M in Q3 2023, driven by declining exports and rising imports. Explore Brazil-Italy trade trends and top trading products via yTrade data.
Brazil - Italy Trade 2024 Q2: Deficit & Tech Imbalance
Brazil's $290M trade deficit with Italy in Q2 2024 highlights a resource-for-tech exchange, with machinery dominating imports. Explore Brazil-Italy trade trends & top products via yTrade data.
