Maersk view 2020 a year of economic reconstruction for Brazilian trade

Global shipping leader Maersk has said it is more optimistic about Brazil in 2020. “We see 2020 as a year of economic reconstruction as Brazil prepares to really start growing again in 2021,” says Gustavo Paschoa, Sales Director for Maersk’s East Coast South America.

The company’s forecast is that imports and exports will grow by 4% and 5%, respectively, in 2020. In addition, Maersk is optimistic that Brazil and China will deepen trade ties, fueling more opportunities.

Brazil signed nine agreements with the Chinese government last year, including one on fruits, where Brazil will import pears and export melons to China. The agreement includes all necessary health protocols, presumably providing reasonable security for the duration of the deal.

Paschoa explains that increasing melon exports to China will have a direct effect on northeastern Brazil: “The region will benefit because northeastern producers have long been trying to increase exports to China, but have found the country to be a very competitive market which usually buys fruit from neighboring Asia-Pacific nations.”

According to the Brazilian government, China is the world’s largest melon consumer: in 2018, it consumed 15,648,000 tons. Last year, China imported a total of approximately $7 billion in fresh fruit. Now Brasilia is focused on increasing trade with the Asian country on several fronts, including fruits but also soybeans.

Paschoa reinforced that the forecasts for 2020 are positive, but that only in 2021 will the economy really start to grow again.

Forecasts for Maersk 2019 x 2020

EXP 2019: + 4.0%
EXP 2020: + 4.5%
IMP 2019: + 5.0%
IMP 2020: + 4.0%

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