Argentina's crisis could further damage the Brazilian economy.
According to Celso Grisi, professor of foreign trade at USP (University of São Paulo), the drop in demand for cars in Argentina should affect Brazil's GDP; growth projections have already been revised due to the chaos of Pedro Parente's pricing policy and are now between 1% and 1,5%; the Brazilian automotive industry represents about 22% of the industrial GDP and 4% of the total GDP.
247 - According to Celso Grisi, a professor of foreign trade at USP (University of São Paulo), the drop in demand for cars in Argentina should affect Brazil's GDP. Growth projections have already been revised due to the chaos of Pedro Parente's pricing policy and are now between 1% and 1,5%. The Brazilian automotive industry represents about 22% of the industrial GDP and 4% of the total GDP.
"The difficulties faced by the Argentine economy are expected to have negative effects on Brazilian production and influence the revision of this year's GDP (Gross Domestic Product), according to a report by the IFI (Independent Fiscal Institution). The neighboring country is one of Brazil's main trading partners and, this year, has faced a turbulent economic scenario and even requested assistance from the IMF (International Monetary Fund)."
One of the sectors most sensitive to this scenario is the automotive industry. Argentina receives 76% of Brazil's exports of light vehicles and 46% of its exports of trucks and buses, according to Anfavea, the entity that represents the automotive sector. Sales to the neighboring country also involve, according to 2017 data, a large volume of business in the areas of machinery and boilers (10%) and iron and steel (4,5%).