São Paulo – Despite having brought global growth to a grinding halt, the novel coronavirus pandemic also fast-tracked ongoing changes to the economic model, according to the executives featured in CEO Talk. The virtual discussion took place this Monday (19) during the Economic Forum Brazil & Arab Countries. The event is having its first-ever online edition, and the discussion featured New Development Bank (NDB) president Marcos Troyjo, El-Sewedy Electrometer CEO Emad El-Sewedy (pictured above). Arab Brazilian Chamber of Commerce (ABCC) Marketing vice president Riad Younes served as moderator.
Younes inquired about the phenomenon of deglobalization. “Pre-March 2020, the world economy was showing signs of picking up, and it seemed we were turning a page. Groups were interested in strategic partnerships towards trade and investment. When the pandemic broke out, the scenario shifted toward uncertainty,” the ABCC executive recalled.
According to Emad El-Sewedy, what is currently taking place is a correction in the global sales model. “For me, there is a new world order now. Right now, we can tell that it comes down to who’s managing to add value for their nations. There has been a shift in the issue of globalization. The business model has been altered. It is clear to me that the changes will focus on companies that will add value at a local level, as opposed to the globalization trend where countries would only export their goods.”
El-Sewedy said the emphasis on local manufacturing enables growth and jobs. “Going forward, big businesses will focus not only in the export of completely finished goods, they will also partner up in several markets to integrate those goods locally. I believe we will see jobs creation and new partnerships, and that resides at the core of bilateral agreements.”
Marcos Troyjo said emerging markets played a bigger role in the world’s Gross Domestic Product (GDP) in 2019. “The world economy slowed down quite significantly, but as concerns other trends that had already been ongoing, those might be picking up steam. Many opportunities are arising. One of them is the participation of emerging countries, like Brazil and other BRICs members and Arab countries, in the world’s GDP,” he said regarding the Arab economic blocs and the group composed of Brazil, Russia, India, China and South Africa.
The New Development Bank’s president explained that this phenomenon is contributing to a shift in international trade flows. “Some trade routes compound that emergence. In the first nine months of 2020, Brazil exported more product to Asia than to North America and Europe combined.”
The forum is hosted by the ABCC in partnership with the Union of Arab Chambers and the Arab League. Journalist and presenter Renata Maron is the forum’s host.
Check out the full coverage on ANBA.
Translated by Gabriel Pomerancblum
