Footwear exports from Brazil to the US and Argentina have recorded a sharp fall on a quarter-on-quarter basis in the fourth quarter of 2022, and this decline continued in January 2023. Inflationary pressure and fear of an economic recession have dried up discretionary expenditures around the world.

Footwear exports to the US fell to $64.250 million in October-December 2022 from $89.300 million in July-September 2022. Volatility in the trade has been noticed for the last year and a half. The shipments were valued at $93.565 million in Q2 2022, $88.895 million in Q1 2022, $76.200 million in Q4 2021, and $65.250 million in Q3 2021, according to Fibre2Fashion’s market insight tool TexPro.

Brazilian shipments to Argentina also declined to $41.743 million in Q4 2022 from $72.367 million in Q3 2022. The trade was valued at $77.368 million in Q2 2022, $52.370 million in Q1 2022, $48.941 million in Q4 2021, and $48.373 million in Q3 2021, as per data obtained from TexPro.

Most countries in the world are facing economic worries related to inflation and recession due to a stronger US dollar and costlier commodities, including crude oil, following supply disruptions resulting from the Russia-Ukraine war.

Fibre2Fashion News Desk (KUL)

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Brazil's footwear exports to US, Argentina down amid economic slowdown