Guedes says Brazil economy not under external shock

Economy Minister Paulo Guedes said today (Apr. 30) that Brazil is not under external shock as a result of the COVID-19 pandemic.

He said during the online hearing of the bicameral Congress committee on measures linked to COVID-19 that exports to China rose up to 26 percent, which compensated for the reduction in sales to other countries.

“Exports to the US and Argentina, the two biggest partners after China, were slashed by more than 30 percent. To the EU, they fell some two, three percent. But to China [exports] were up 25, 26 percent. Since China is more than the US, Argentina, and the EU combined, Brazilian exports remain unchanged.”

Reduction in the economy

Guedes also told Congress members that initial forecasts on the reduction in the economy this year stood at six percent, one third of which believed to come from an external impact, brought about by a slash in exports and the interruption of commerce, among other factors. “And two thirds were said to derive from internal disruption, due to the fact that we’re doing social distancing, the interruption of payment chains, and a slowdown,” he explained. The current projection is a four percent drop.