Economy

Pandemic reduces Brazil’s foreign trade flow by 8%, according to CNI survey

May, 24, 2021 Posted by Ruth Hollard

Week 202123

As the twelfth largest global economy, Brazil does not figure among the major players in international trade. In 2020, the country occupied the 27th position in the world trade ranking, with only a 1% share in the global movement of exports and imports. This information is taken from the survey carried out by the National Confederation of Industry (CNI), based on recent figures from the World Trade Organization (WTO).

According to the study, the Covid-19 pandemic had a larger-than-average impact on Brazil’s foreign trade. In 2020, the Brazilian trade flow (sum of exports and imports) decreased by 8.2%.

The decrease exceeds the 7.6% shrinkage in the world trade chain in 2020. In relation to the other members of the G20 (group of the 20 largest economies on the planet), the scenario did not improve for Brazil. Last year, the flow of trade between group members decreased by 8% compared to 2019.

The graph below, compiled using DataLiner data, shows Brazilian foreign trade by sea since January 2019:

Brazilian Imports and Exports by sea | Jan 2019 to Mar 2021 | TEU

Graphic source: DataLiner (click here to request a demo)

The downturn in the Brazilian trade flow is due to a 7% drop in exports and a 10% drop in imports last year. The drop in foreign sales is the result of the interruption of trade chains and the fall in international trade, especially in the first months of the pandemic. On the import side, the main factor was the devaluation of the real, which made goods coming from abroad more expensive.

Source: Comex do Brasil

To read the full original article, access the link below:

https://www.comexdobrasil.com/pandemia-reduz-em-8-corrente-de-comercio-exterior-do-brasil-segundo-levantamento-da-cni/

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