LatinNews Daily - 19 October 2021

In brief: Brazil to suffer from China’s economic slowdown

* Economists in Brazil have warned that the slowdown in economic growth in China will be felt particularly strongly in the commodity-exporting South American giant. Recent data shows that China’s GDP grew 4.9% year-on-year in the third quarter this year, the slowest recorded growth since Q3 2020, and contracted 7.9% compared with the second quarter. Speaking to Brazilian daily Folha de São Paulo, economists from Itaú bank estimate that Brazil’s GDP will contract by 0.3 percentage points for every percentage-point fall in China’s GDP. In comments to Folha José Augusto de Castro, the executive president of the Brazilian association of foreign trade (AEB), noted that slower growth in China will inevitably lead to reduced demands for Brazilian exports. The latest data from the indicator of foreign trade (Icomex) compiled by the Fundação Getúlio Vargas (FGV) university shows that Brazil’s exports to China fell in September, in part due to restrictions on the sale of meat and reduced demand for iron ore.

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