Growth in Brazilian trade relations with Arab world

The Brazilian government has taken many steps to boost economic growth and raise the standard of living of its citizens. Recent figures indicate that 11.4 per cent of Brazilians live in poverty according to data for 2018. Today, the Brazilian economy represents the seventh largest global economy. Brazil follows the policies of a free economy by adopting free market policies, which us fuelling average annual GDP growth of 5 per cent. The country has succeeded in diversifying its economy to become a major industrial bloc that has attracted many investments and membership of the G20. The country also seeks to boost trade with many nations of the world, including those in the Arab region. It makes strenuous efforts to attract investments on the one hand, and reduce poverty on the other. Brazil’s relations with the Arab world are witnessing many developments, despite its recent hostile stances on the Palestinian issue. According to the Brazilian-Arab Chamber of Commerce, the trade balance between Brazil and the Arab countries recorded a remarkable growth of 50.57 per cent on an annual basis during the last few years, reflecting robust trade relations between the two sides. The volume of trade exchange between Brazil and the Arab countries increased from $3.1 billion in the first ten months of 2018 to $4.68 billion during the same period in 2019. Brazilian exports to Arab countries have increased in size and value to reach $10.3 billion during this period. Brazilian imports from Arab countries reached $5.65 billion during the first ten months of 2019. This means that the volume of foreign trade between Brazil and the Arabs totalled $15.99 billion in value and includes a wide range of goods and materials. Thus, Brazilian officials stress the importance of strengthening trade relations between the two sides. According to the Arab-Brazilian Chamber of Commerce, both sides are keen to maintain the pace of growth in bilateral trade. The officials also expect relations to witness positive developments via the establishment of joint ventures and industrial projects as import-substitution initiatives. This comes against the backdrop of efforts by Arab countries to strengthen their economic diversification policies and develop their industrial sectors. Relations between the two sides are also likely today to achieve more positivity and growth while expanding cooperation in various fields such as science, technology and the environment, as well as economy and trade. There are several attempts by the new Brazilian government to improve the economic situation in the country, confront the economic crisis, contain inflation and streamline the economy. Its priority is to focus on reducing government expenditures while maintaining funding for social programmes for the less-privileged, controlling public expenditures, and fighting administrative and financial corruption. It is expected to become one of the largest economies in the world in the coming years What distinguishes Brazilians is that they work in all professions available to them, which does not give the opportunity for foreign labour to come to this country. At the same time many Brazilians go abroad to work in foreign countries, and thus they become a source of valuable remittances to their home country, thereby boosting domestic investments.