The corona virus is spreading rapidly through the populace of Brazil and looking at the stats of the current over the past month, fatalities from this disease have increased by more than 5 folds! Yes, the transmission levels have brutally surged in the past months. Many epidemiologists expected that remote areas may not let the community affect, but the first virus in the Brazilian capitals of Sao Paulo and Rio de Janeiro is spreading to areas where basic health care is often at stake. Latin American countries, including Brazil, have significant links with China, and in recent decades, especially with trade, foreign direct investment and lending, economic relations with China have increased dramatically. In 2000, Latin America’s trade with China increased to $12 billion, up to $306 billion in 2018.
Brazil is one of the fastest emerging economies across the globe which recorded the nominal GDP of around $1.8 trillion in 2019 (as sourced by the International Monetary Fund). Brazil also has the 2nd largest manufacturing sector in the Americas, with industries ranging from automotive, steel and petrochemicals to aircraft, computers, and consumer durables. However, the recent emergence of coronavirus transmitted from China, has endangered the macroeconomic stability of Brazil and other Latin American and Caribbean countries. China accounts for 28% of Brazil’s total exports, 10.5% of Argentina’s exports, and 32.4% of Chile’s exports. In addition, these countries export major products such as minerals and metals, agricultural products and fuels to China.
This commodity trade was negatively impacted by the COVID-19 spread. This report analyzes the impact of COVID-19 on the Brazilian economy and major industries across the country. China has been dealing with Brazilian countries for decades. The key trade partners of Brazil include Colombia, Argentina, Peru, Chile, and Venezuela. Cluster exports from these countries are concentrated in four products, including copper, soybean, crude oil and iron ore, accounting for about 75% of Brazil’s exports. The spread of the corona virus will have a negative impact on China’s trade with Brazil by implementing locks on people as well as businesses
