Brazil's exports to Argentina fell by 34,3% in year-on-year terms in 2019, with the automotive industry being the hardest hit activity, said this Wednesday (12.02.2020) a report of the Argentine Chamber of Commerce and Services (CAC).
In global terms, the Brazil's foreign sales fell by 6,5% in 2019, according to information provided by the Brazilian Ministry of Economy and disseminated by the CAC.
The decline in foreign sales is striking in the latest annual records presented by Brazil, which report an interannual growth in exports of 17,5% and 10,1% in 2017 and 2018, respectively, while in 2019 it showed a decline of 6,5% and in January it registered a drop of more than 20%.
The cause of this phenomenon is linked to the slowdown in world trade growth, which fell from 3,56% to 1,13%. between 2018 and 2019, caused by the decline in raw material prices, the slowdown in demand from the world's major economies and rising protectionist tensions, with the "trade war" between China and the United States in the foreground.
While the restoration of bilateral relations between the United States and China should improve the flow of goods worldwide, in Brazil there are fears for the new event on a global scale: the Coronavirus.
Regarding this year, Brazil's Central Bank forecast a growth of its Gross Domestic Product (GDP) of 2,4% and the CAC pointed out that "what remains to be seen is whether this increase is supported by the domestic market alone, or whether it is accompanied by an upturn in foreign trade."
Finally, the CAC highlighted the growth of Brazil, Argentina's main trading partner, "it will benefit us by increasing demand for imports."
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