BRAZIL – According to a recently published report by the Brazilian Tree Industry (IBA), in 2016 the Brazilian planted forest sector was impacted, by the considerable weakening of the economy, falling 3.3% in 2016.

Although significant, the 3.3% decline was lower than the decline in general economy (-3.6%), in industry (-3.8%) and in agriculture (-6.6%).

In 2016 the Brazilian planted forest sector contributed 1.1% to GDP and was responsible for generating BRR 11.4 billion in federal, state, and municipal taxes throughout 2016, which corresponds to 0.9% of all taxes collected in the country. However, this was down 5% year on year due mostly to the drop in domestic sales of paper, wooden panels and solid wood products.

In 2016 export revenue from the Brazilian planted forest industry reached USD 8.9 billion, a 1.1% decrease compared to 2015. A drop in export prices was the main reason for the fall in revenue. In terms of volume there was a 14% increase compared to the previous year.