Brazilian booming export revenues due to high commodity prices, not increased volume–says former Central Bank board member

Alex Schwartzman, a former board member of Brazil’s Central Bank, calls attention to the weak fundamentals behind the steep increase in the country’s export revenues. In a recent op-ed published at Folha de S. Paulo, a national newspaper, Mr. Schwartzman explains that the prices of commodities exported by Brazil rose 163 percent in 2002-11, well above the 65 percent increase in the prices of all exports in the global economy.

On the other hand, volumes exported from Brazil rose at a slower pace than global levels–61 and 67 percent respectively. Given those figures, Mr. Schwartzman, who is now an economic consultant in Sao Paulo, expects that Brazil will face harsh times as China starts to grow at a lower pace and demand for commodities drop.