The commodity (mini) supercycle and its effect on the Brazilian economy

Increasing commodities prices has caused some excitement about a potential new supercycle. But how big will the boom be? And will Brazil be able to benefit from it?

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Soy truck unloads cargo at the Port of Ilhéus. Photo: Joa Souza/Shutterstock

Since the arrival of the coronavirus pandemic in Brazil last year, the country’s biggest commodity exports have seen massive price spikes. Soybeans are now 57 percent more expensive today, while the price of oil and iron ore rose 231 percent and 154 percent, respectively. 

And this spectacular rise in prices has a considerable effect on the Brazilian economy.

Still wrestling with the coronavirus crisis, 15 million workers are unemployed in Brazil, according to official statistics. And this does not even include people who have abandoned job searches altogether due to Covid-19. At the same time, poverty is becoming more prevalent...

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