Economy

Crisis in Argentina to affect neighboring Brazil

Jul, 28, 2022 Posted by Gabriel Malheiros

Week 202230

The worsening crisis in Argentina should spill over into Brazil, with negative consequences for foreign trade between the two countries. Faced with the shortage of dollars that the Argentine economy faces, the perspective is for a reduction in the volume of Brazilian sales to its neighbor.

In the first half of the year, Brazil exported US$ 7.5 billion to Argentina, a growth of 33.3% compared to the same period in 2021. According to experts, however, this scenario should change with the measures of the Argentine government to contain the imports and promote exports.

Please see below for a comparison between Brazilian exports to Argentina and vice-versa, in terms of TEUS, from January 2021 to June 2022. The data below is from the platform DataLiner developed by Datamar.

Brazil – Argentina Trade | Jan 2021 – Jun 2022 | TEUs

Source: DataLiner (click here to request a demo)

“The country has nowhere to obtain more dollars,” says Soledad Duhalde, director of Buenos Aires-based consultancy Abeceb. As a result, according to José Augusto de Castro, executive president of the Brazilian Foreign Trade Association, shipments to Argentina should decline by 20%.

Source: Valor Econômico

To read the full original article, please go to: https://valor.globo.com/impresso/noticia/2022/07/28/crise-vai-afetar-as-exportacoes-ao-pais-vizinho.ghtml

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