Water crisis brings risk to agribusiness GDP

Valor Econ├┤mico, Lucianne Carneiro e Alessandra Saraiva in 22/06/2021

The situation in the sector could worsen if the restrictions on the use of water, under study by the government, receive the green light and come to affect fruit and vegetables.

Despite being the main driver of economic growth in the first quarter, the agricultural GDP should end stable in 2021, after four consecutive years of growth. The projection is from the consulting firm MB Agro, which, in view of estimates of losses in crops such as corn, coffee and sugarcane due to the drought, revised the forecast for an increase in the sector’s GDP from 2.5% to 3% to zero.

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