World

New growth forecast for the Brazilian footwear industry

Aug 23, 2023 Brazil

The Brazilian Footwear Industries Association (Abicalçados) has revised the footwear sector's growth in production for 2023 to 2.1%, as compared to the previous forecast of 1.7%

Following the improvement recorded in the level of production in May, according to the Brazilian Institute of Geography and Statistics (IBGE) - which was 2.3% higher than the same period of last year -, Abicalçados raised the footwear's industry growth projection in 2023 to 2.1% (to more than 865 million pairs), as compared to the forecast of a 1.7% increase at the beginning of the year.

The Executive President of Abicalçados, Haroldo Ferreira, pointed out that this positive projection is due to the increase seen in the domestic market, which absorbs over 85% of the footwear industry's sales. “At the beginning of the year, we had a projection of 0.5% GDP growth, a forecast that went to 2.4%. With the economy growing, we grow together”, he said.

On the other hand, the downward trajectory of exports is expected to continue until the end of the year. “The projection for footwear exports has not been revised, accounting for a fall in pairs between 6.7% to 9.1%”, he added, emphasising that the return of China to the international markets and the appreciated exchange rate should be decisive for the decrease in international dynamics.

Source and Image Credits: abicalcados.com.br

Brazil Exports Footwear Production Shoes