Continued slowdown in China could nullify the gains from the BRL depreciation

In particular, Brazil's export growth strongly depends on Chinese growth and the possibility of a further Chinese slowdown could nullify most of the gains from the real depreciation. It may be argued that the gains in the manufacturing sector - through currency depreciation - will not be affected much as the impact of the slowdown is predominantly felt in the commodity exporting sector. 

Brazil manufacturing can also gain share in the US and European markets. Nevertheless, the Chinese slowdown could potentially affect global demand growth and could be the key challenge for a medium-term recovery in Brazil's external demand.