Agriculture: sector GDP rises 13.2% in 2023, predicts Ipea – 06/29/2023 – Market

An improvement in agricultural conditions made the Ipea (Institute of Applied Economic Research) readjust the forecast for the sector’s GDP to 13.2% this year. The previous estimate was 11.6%.

In the first quarter, compared to the same period of 2022, the GDP of agriculture and livestock recorded an increase of 18.8%, according to data released by the IBGE (Brazilian Institute of Geography and Statistics).

The upward elevation of Ipea projections occurs because, based on the most recent IBGE data, there was a prospect of improvement in agricultural production. In the crop sector, soybean production is 24% higher than last year’s; corn, by 11.5%; sugar cane, by 6.6%, and coffee, by 5.9%.

The scenario also improves in livestock. The IBGE estimates an increase of 3.3% in beef production and 2.7% in poultry production. The pork and egg areas are expected to grow by 2% this year. Milk production will have a reduction of 1.7%.

According to Ipea technicians, this improvement will reflect on the sector’s GDP, which, since September of last year, has been estimated with a double-digit evolution in 2023.