Brazilian agribusiness GDP grew 6.8% from Jan to Jul 2020 despite COVID-19

Brazilian agribusiness GDP grew 6.8% from Jan to Jul 2020 despite COVID-19, making it the sector with the highest growth in Brazil. According to a researcher from CEPEA, there were five main factors that drove this excellent performance:
· First, agriculture is more resilient to economic crises, due to its characteristics of elasticity and supply and demand;
· Secondly, the excellent agricultural harvest of this year boosted GDP within the farmgate;
· Third, as many agricultural activities are essential, the sector was unable to stop during the pandemic, keeping running and generating income;
· Fourth, the external scenario contributed with doubly positive situation with heated demand from China and the devaluation of 'Real' currency;
· Lastly, the governmental emergency aid gave support to the families income, heating domestic demand.
The negative note on this heated demand was the pressure on staple food price rises, creating an unexpected inflation in the Brazilian economy.