BRAZIL, the world's sixth biggest economy, is facing continuing economic uncertainty with second quarter airfreight volumes below the pre-crisis peak raising concerns over future performance, according to International Transport Forum at the OECD.

External trade transported by air declined to five per cent below pre-crisis levels in August 2012. Both imports and exports by air weakened to four per cent and 11 per cent below pre-crisis peak of June 2008, reflecting weak domestic and international demand.

 The OECD's latest statistics brief said Brazil's dependency on Asia-led growth is 'exposed'. Asia accounted for half of Brazil's external trade by sea from January to August 2012, measured in tonnes of goods moved, compared with 25 per cent in 2000.

 Total external trade by sea in the second quarter remains robust at 13 per cent above the pre-crisis peak in August 2012.

 External trade by sea with Asia continues to expand with exports reaching 41 per cent above the pre-crisis peak. External trade by sea and air with North America remains strong at 10 per cent and 11 per cent above June 2008 levels respectively.

 In contrast, exports from Brazil to Europe by sea and by air declined to 21 per cent and 19 per cent below pre-crisis levels. Trade with other Latin American countries has stagnated.

 Despite air cargo movements with Asia and Latin America remaining strong (10 per cent, 16 per cent above pre-crisis levels), overall air freight trends, measured in tonnes of goods moved, show signs of a slowing down across all continents, the report said.

(Source:JOC)