Brazil’s CDS (Credit Default Swap), an international indicator of default risk, tripled in 2020 because of the crisis triggered by the Covid-19. The upward trend was also observed in the bonds of all other countries in the world, since the disease spared no economy. Nevertheless, Brazil’s CDS managed to distance itself from the average of those countries with the same risk rating as ours (BB-) in the main international agencies.
The volume of credit granted by Caixa to micro-enterprises totalled R$6.3 billion ($1.2 bn) during the coronavirus. In May alone, the volume loaned to the segment more than doubled in relation to the same month of 2019. Last month, Caixa loaned R$2.464 billion ($465 mm) to micro-enterprises, an increase of 111% in relation to the R$1.164 million ($219 k) loaned in May of last year.
Despite the differences in the diplomatic field, Brazilian exports to Asia grew by 27.7% in May, with an increase of 35.2% in products exported to China. Amid the coronavirus pandemic, sales of agricultural products, specifically to Asians, prevented a further drop in exports last month, which fell 4.5%. From January to May, sales to Asia grew 16.8%.
With declines in exports and in imports, a registered Brazilian trade balance is positive of $4.548 billion in May. The data was released by the Ministry of Economy’s Foreign Trade Secretariat. The number was slightly above the median as detected by Projection Broadcast, from $4.400 billion, and within the range of expectations, from $2.300 billion to $6.700 billion.
Iron ore exports from Brazil in May totalled 21.5 million tonnes, down 28% compared to the same month last year, according to government data published on Monday, as mining company Vale still working to recover part of the production paralyzed after the disaster in Brumadinho (MG). Year-to-date, iron ore shipments from Brazil reached 115.3 million tons, down 13.3% compared to the same period in 2019.