Latin America and Brazil [http://brazilandeconomics.blogspot.com] is a great site / blog ran by a very intelligent lady by the name of Victoria Saddi, a former senior Latin America economist at RGE monitor.
Here are a few excerpts from her recent piece of China & Brazil. Click on the various links throughout this post to access her site and the full article directly.
Brazil posted a trade surplus of $ 3.71 billion in April, a significant increase when compared to the surplus posted in March.
The main news on the trade front is the fact that China became the leading destiny for Brazilian exports. Besides that, the trade between both countries reached $3.2 billion in April. In contrast, trade between Brazil and the United States reached $2.8 billion in the same period. In the year until April, trade between China and Brazil reached $10.2 billion, compared to $8.9 billion in the same period last year. Clearly, the fact that China is expected to grow 7% in 2009 is explaining the good performance of Brazil´s trade with China.
So, why do we care about China and the fact that it has replaced the US as the leading market for Brazilian exports? The answer is because we believe that Brazil will not present a very severe recession in 2009 (with growth reaching 0.9%) mostly because of the strong ties between both countries. Export relationships are developed though time, it takes a while to open up and conquer markets. Brazilian exports to China have been increasing and improving since 1993.
Click here to access this article in its entirety from Victoria Saddi's website
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