The Brazilian government expects the reopening of China in the first half of 2023 to be positive for the Brazilian economy, due to the number of Brazilian companies exporting raw materials to the Asian country.

In 2022, Brazilian exports of products were US$334.463 billion and had China as the main destination, with a share of 26.8 percent, followed by the United States (11.3 percent).

Overall, the challenging global economic scenario for 2023 due to inflation and high interest rates, which could lead to a slowdown or even a recession in the United States and Europe, will likely put pressure on the Brazilian economy.

Previously, China’s share as a destination for Brazilian merchandise exports fell from 32.4% in 2020 to 31.3% in 2021.

Among the main Brazilian products exported in that direction in 2022 are soybeans ($31.849 billion), iron ores and concentrates ($18.170 billion), oil ($16.784 billion) and frozen beef ($7.951 billion).

On the contrary, imports of products to Brazil totaled 272,702 million dollars in 2022, with a participation of Chinese suppliers of 22.3%, followed by the United States (19%).

Brazilian economy

On the domestic front, the Brazilian government has stated that it considers 2023 an opportune year to advance the reform agenda, such as fiscal reform, preserving the microeconomic advances of recent years and reinforcing the commitment to fiscal sustainability.

In this context, the government has stated that growth of the national economy is expected to be slower than in 2022, in a context marked by high interest rates and above-target inflation.

Brazil’s GDP in Q4 2022 declined 0.20% from Q3 2022.

Compared to Q4 2021, GDP increased 2.9% in Q4 2022, measured on a 12-month cumulative basis.

Over all, the fourth-quarter 2022 GDP results were influenced by the industrial sector, which decreased 0.30%, and the services sector, which increased 0.20%, in each case compared to the third quarter of 2022.