The pandemic of the new coronavirus is changing the profile of Brazilian exports, as Brazil becomes even more reliant on its sales to China. In 2020, the exports to the Asian country grew by 4% in relation to the previous year and reached a record percentage of 32.3%. China had been growing before that, but with more moderate increases. In one year, sales to China rose from $ 63.4 billion to $ 67.8 billion (up 7%), according to data from the Ministry of Economy. Due to the international crisis, total Brazilian exports dropped from US$ 225.4 billion, in 2019, to US$ 209.9 billion in 2020. The World Bank predicted China’s growth of 2%, while the world average is expected to drop by 4.4%. Brazil depends on China’s appetite to have an advantage in its exports (such as soybeans and iron ore). Armando Castelar from Getúlio Vargas Foundation (Ibre/FGV) recalls that the China’s appetite for commodities should also grow this year, as the World Bank’s projections show an increase of 7.9% in China’s GDP, as well as some analysts have previously projected a 9% growth.
Sources: Estadão/Canal Rural
*Translated by Ia Niani