IMPACT OF GROSS DOMESTIC PRODUCT GROWTH ON BRAZILIAN NATIVE FORESTS: A COMPUTABLE GENERAL BALANCE ANALYSIS

Abstract

The Brazil is one of the world’s leading producers and exporters of agricultural products, and it should continue to expand its production in the coming decades, remaining one of the main providers of food, fiber, and bioenergy for domestic and foreign consumption. This study aimed to analyze, by using Static Computable General Equilibrium model (BREA), the impacts on intermediate demand and the growth of agricultural production necessary for GDP to reach the expected projection for 2030, both for Brazilian macro-regions and for the MATOPIBA as well as the loss of native forest necessary for this happens. As a result, to compose the GDP growth in the North region, fruit growing would emerge with an increase of 9.2%. In MATOPIBA, soybean growth in suppressed forest areas showed an elevation of approximately 9.7%. It is observed that soy would continue to migrate to regions that hold cheap land and without the soybean moratorium embargo. The total amount of forests suppressed in Brazil for the expected economic growth to occur would be 490,000 ha. It is concluded that the economic growth related to the agricultural sectors is also linked to the conversion of native vegetation areas for future economic growth.

Publication
In REvista Informe GEPEC, vol 27, n 1 (2023)
Cicero Lima
Cicero Lima
Research Economist