Brazil’s new economic bright spot

After the devastating COVID-19 outbreak in 2020, countries are attempting to recover from economic issues caused by the pandemic. As people were forced to stay inside their homes, there was less consumption of goods, use of services, less money was being circulated around the globe, ultimately causing many financial issues for most countries, Brazil amongst them. As the population around the globe is increasingly becoming immune to the coronavirus, Brazil is looking to bounce back after suffering economically during the pandemic. As the world recovers and companies look to remain afloat, it is believed that many will rely on exports of commodities which Brazil is a major exporter of.
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Brazilian Foreign Trade Association president José Augusto de Castro, told Jovem Pam News in February of this year that Brazil’s economy will rely heavily from exports, and those most in demand are the ones which Brazil has the best access to for exportation. Brazil is the top exporter of soybeans globally, as in 2019 we have exported around 26.1 billion US dollars’ worth of soybeans. Additionally, Brazil ranked second in exports of iron ore in 2020, being responsible
for 18.4% of said exports around the globe, despite an atypical year.

Soyabean Farm in Rio Grande Sul

This is a rare and extremely beneficial opportunity that has been presented to Brazil, as Castro also told Jovem Pam News that the consensus for companies has recently become, “The companies either import or close their factories. So, they choose to import,”. This presents an opportunity to Brazil that few countries will have the luxury of having at their disposal, and according to Castro, the exporting benefits that Brazil has been presented with will likely move forward into 2022, as countries look to regain their footing following the pandemic, opening doors for Brazil to prosper economically.
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Brazil must fully take advantage of this unique chance; to use it as a steppingstone toward getting past the economic losses suffered during the pandemic. Having easy access to the exports that will be in higher demand is a privilege that few countries will have, and Brazil must seize this opportunity to rally from the struggling times we’ve been through.

​Written by: Matias Gonçalves
Edited by: Anna Kissajikian