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China Overcomes US and Becomes Brazil’s Number One Trade Partner

Brazilian Ministry of Development, Industry and Foreign Trade’s just released final, revised report on Brazil’s international commerce in 2009 shows that in 2009, Brazil’s trade with the United States totaled US$ 35.9 billion (exports: $15.7 billion; imports: $20.2 billion).

But, for the first time, trade with China was more: a total of US$ 36.1 billion (exports: US$ 20.2 billion; imports: US$ 15.9 billion). The difference was only $200 million, but that does not make it any less a historical moment.

In other economic news, the president of the Central Bank, Henrique Meirelles, reports that Brazil has now met its inflation targets for the sixth consecutive year.

He was able to make that affirmation after the government statistical bureau (IBGE) released its Broad Consumer Price Index (IPCA) for the year of 2009. The result was inflation of 4.31%. The government target was 4.5%.
 
Meirelles said the real significance of having inflation under control was that it created a “foreseeable” economy where investments would increase naturally. He pointed out that average GDP growth over the past few years has been 5% (almost double recent growth, which, of course, was down due to the international financial crisis).
 
Brazil’s Central Bank (Fed) president added that wage earners benefited from controlled inflation and the job market showed a vigorous variation of employment levels.

Meirelles concluded by saying that Brazil begins the 21st century with international respect and the perspective of sustained growth over a long period that will be characterized by a substantial reduction in social inequality.

BNDES Raises US $1 billion

The Brazilian Development Bank (BNDES) has announced the conclusion of a US$ 1 billion bond offer on international markets The bonds mature in July 2020 and will have a yield of 5.634% per year.

The BNDES says that is the lowest bond yield that a non-sovereign Brazilian emitter has been obligated to pay on 10-year bonds since the beginning of the international financial crisis in 2008.
 
Along with that good news, according to the BNDES, demand for the papers was higher than supply, making the offer a complete success.

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