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Brazil’s shoe exports fell 40% in July

Brazil suffered a significant decline in both the volume and value of its footwear exports in July, according to the latest data from Brazilian footwear industry body Abicalçados.

During the month, 4.8 million pairs of shoes were exported from Brazil for a value of $58.4 million, respective decreases of 40% and 26.4% compared to the same month of 2017. 

It is the sector’s second worst monthly performance of the year. The worst was in May, when an eleven-day truckers’ strike affected footwear shipments. 

Following the disappointing performance in July, Brazil’s footwear exports for the first seven months of 2018 stood at 60.2 million, 10.7% lower year on year. The value of these exports was down 10.3% to $545.4 million. 

The executive president of Abicalçados, Heitor Klein, attributed July’s poor results to the devaluation of the currencies of emerging countries against the US dollar, which makes Brazilian products more expensive overseas. 

“The US Federal Reserve’s increase in interest rates has led to capital flight from emerging countries due to the attractiveness of investing in the US. This has resulted in the devaluation of local currencies,” he said. 

Mr Klein said it is likely that July’s disappointment will be repeated over the next few months. Furthermore, he said that the sector’s full-year results for 2018 will almost certainly be lower than those from last year.

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