According to data provided by CNI, the coronavirus crisis could reduce the number of exports by US$18.6 billion in Brazil.
The economic crisis caused by the novel coronavirus pandemic in the world could cause a major reduction in the number of exports in Brazil. The projected number is at least US$18.6 billion, according to information from the National Confederation of Industry (CNI). This is equivalent to 8.25% of the US$18.6 billion that the country exported last year.
The institution projected this initial data based on the estimate that the global Gross Domestic Product (GDP, sum of goods and services produced) will reduce by 1.1% in 2020.
In terms of volume, the coronavirus pandemic will likely lead to a decrease in the amount exported by 56 million tons, a drop of 11% compared to 2019.
The Ministry of Economy's Foreign Trade Secretariat had reported yesterday (1) that the resumption of Brazilian exports after everything returns to normal will occur slowly. This will happen due to the low demand across the planet. With the pandemic, several countries are adopting measures to reduce the movement of people, such as social isolation, closing borders and non-essential activities.
In a statement, the CNI stressed that the projection is preliminary because the balance sheets are based on a scenario of extensive global recession. This survey does not concern exports to specific markets, as it does not yet have data separated by country or region. The institution, however, reported that the impact on industrial exports will depend on the measures taken by other Latin American countries, which are the main destinations for Brazilian manufactured goods.
Number of infected people grows in Brazil
The coronavirus pandemic has been growing in Brazil. As of today (2), 299 deaths from Covid-19 and 7,910 confirmed cases have been recorded. According to the most recent bulletin from the Ministry of Health.
This Thursday (2), 1,074 new confirmed cases of Covid-19 were recorded. The Minister of Health, Luiz Henrique Mandetta, said in a press conference that there is no shortage of protective equipment, such as masks, gloves and respirators, in Brazilian states, even with the difficulty, reported by him the day before, of obtaining the purchase of these products from suppliers in China. “All of our states have a good level of supply”, said the minister.