CEPEA - Centro de Estudos Avançados em Economia Aplicada

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Forest Economy

The Forest Sector, also called Agro-Industry System of the Wood (SAG Wood) or Producing Chain of the Wood, is represented by the conjunct of supplying segments of products and services for the silviculture and vegetal extraction, the silviculture and vegetal extraction sectors themselves, and the processing and distribution activities related to this area.

That is an important sector of the Brazilian economy, including since the production of a truck used in the forest activity to the production of paper and wood manufactured, for example.

The great diversity of activities that can be included in the Forest Sector makes hard to measure its dimension. Considering that only part of this sector, the wood production and its first processing, it is possible to observe that it represented 3.3 percent of the Brazilian GDP in 1995 and produced 8.7 percent of the Brazilian exports in 1999.

That means that the Forest Sector yields, in the minimum, US$ 18 million of GDP and export US$ 4.2 billion per year.
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