Israeli innovation is what Brazil needs after coronavirus
A strong economic rebound is underway according to the central bank president Roberto Campos Neto, who said that the bank’s prevision for a 6.4% GDP downturn over 2020 is too pessimistic.
By JERUSALEM POST STAFFA man displays national flag of Israel as supporters of Brazil's new President Jair Bolsonaro gather outside the Planalto Palace ahead of Bolsonaro's swear-in ceremony, in Brasilia, Brazil, January 1, 2019. (photo credit: SERGIO MORAES / REUTERS)Brazil holds a sad record in 2020 as one of the countries with the highest mortality rates in the world with more than 2.2 million COVID-19 cases. Brazilian President Jair Bolsonaro, who didn't take the threat seriously from the beginning of the pandemic, remains in self-isolation at his official residence in Brasília after testing positive for the coronavirus for a third time in two weeks earlier this week.A strong economic rebound is underway, according to the central bank president Roberto Campos Neto, who said that the bank’s prevision for a 6.4% GDP downturn over 2020 is too pessimistic. He added that the economy has started a “V-shaped” recovery and that strong pent-up demand will be seen in the coming months.For Israeli companies, whose Brazil is one of the country's largest trade partner with annual commerce estimated at $1.5 billion, this is good news. This cooperation between the two countries led to the opening, six-and-a-half years ago, of a second Economic and Trade Mission in Rio in addition to the one that long existed in Sao Paulo, one of 44 economic missions operated globally by the Ministry of Economy and Industry.“Brazil entered 2020 with really high expectations. The forecasts for 2020 were very good and everyone was waiting for this year, which of course also resulted in an increase in trade with Israel in 2019 and 2018,” Taly Segal, who heads the Economic and Trade Mission to Rio de Janeiro, told CTech. “Initially, companies put everything on hold, waiting to see how the pandemic would unfold. We would get many responses like ‘let’s talk after the end of coronavirus.’ But from around the middle of May that approach has changed, and we began to feel that businesses understood that they need to adapt to this new situation, and we are seeing much more cooperation.”Brazil has averaged over 1,000 deaths per day since the end of May, with the total death toll currently at 84,207 and is placed right after the US COVID-19 cases in the world.“This is a global crisis and Brazil can’t escape it,” added Segal. “But the country is beginning to get back on track and this presents opportunities for Israeli companies. Israel’s innovation is exactly what is needed here, with companies looking to become more efficient.”Israeli tech in the fields of food tech and smart cities is popular in Brazil, while in Rio, Segal's main focus is on the energy, mining, health and education sectors and the Brazilian administration with which she already closed contracts.She is confident that despite COVID-19 devastation, the recovered Brazilian economy could use the help of Israeli technologies.“Since I arrived here two-and-a-half years ago matters have only improved, both from an economic standpoint and also as far as the relations with Israel go. Israeli technology has a very good reputation and Brazil has opened up to innovation over recent years,” said Segal. “Every company has its innovation department or officer, and we are receiving more and more approaches. I don’t think the pandemic will stop that, but it has certainly changed the format in which we operate.”“The financial situation will have an effect, but I think that other opportunities will arise, as we are seeing more openness from the Israeli side to explore the Brazilian market. We always viewed Israel and Brazil as complementary economies. Brazil is a country with many resources and is interested in adopting Israeli technologies. This crisis will only accelerate this process.”
