China will see an economic slowdown in 2022 (and Brazil beware) – Money Times
2 min read
major country to follow, China It should be a point of interest for investors, as the Asian country will experience an economic slowdown in 2022, which could have real repercussions here in Brazil.
The World Bank expects that in this period, China’s GDP growth by 5.1%Which is less than the 8% result expected for 2021. There are many factors to this.
according to land investments, China is facing high inflation with high prices goods. The country is a major buyer of this category of products, accounting for 18% of the world’s gross domestic product.
“Brazil is watching this performance carefully, One third of the goods we produce are exported to China”, highlights analyst Regis Chinchilla.
In this scenario, soybeans, iron ore, oil, cotton and animal protein are in the hot seat.
In an effort to contain inflation and for environmental reasons, Beijing has taken steps around iron ore and precious metals in the second half of last year.
“The Chinese government has used measures such as releasing part of its crude reserves to increase supply and limiting the country’s steel production,” the analyst says.
This slowed down the Chinese economy and affected the outlook for 2022. In the specific case of crude, it leaves Valley (VALE3) at an inflection point.
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