The Ministry of Economy points out that the industrial and services sectors have already begun to feel the impact of the advance of the coronavirus pandemic in Brazil.
According to the Special Secretary for Productivity, Employment and Competitiveness of the Ministry of Economy, Carlos da Costa, in a statement to Estadão/Broadcast, Brazil is already feeling the effects of the coronavirus pandemic. Costa said that the government has already identified certain isolated effects of the pandemic in the industrial and service sectors. There is beginning to be a decline in the level of these activities.
“Starting next week, we will have an information hotline. For now, we have identified isolated effects in some sectors of industry and services, but in the short term the biggest impact will be on the aviation and events sectors,” said the secretary.
Sectors such as the airline industry have many costs tied to the dollar, which has already risen 20% this year and closed at R$ 4.8163 in the last trading session, setting a record. The events sector has also felt the pressure due to the recommendations from the Ministry of Health for the population to avoid crowds. Capital cities such as Rio de Janeiro and São Paulo have already restricted events with large numbers of people.
Other consequences of the pandemic
Due to the spread of the coronavirus, the GDP growth projection has already been changed by banks. The forecast is that it will not exceed 1.5% this year. The Ministry of Economy itself changed its estimate from 2.4% to 2.1% – still higher than the market's.
The department is monitoring those who have been impacted by the crisis in the production sector. This has been done since Carnival and has supported discussions in the newly created monitoring committee at the ministry. According to Costa, the department is trying to act “calmly and as quickly as possible,” maintaining contact with all associations and confederations in the production sector. “We are working on measures that ensure the minimum impact on our production and employment,” he said, without specifying what these actions would be.
The Ministry of Economy, last Thursday (12), announced the first measures to combat the impacts of the new coronavirus in the country. One of the measures is the anticipation of 50% of the 13th salary of INSS retirees and pensioners for the month of April, with an injection of R$ 23 billion into the economy. Also on the list is the reduction in interest rates on payroll loans for this public.
The government will propose to Congress the expansion of the benefit margin that can be compromised by payroll deduction. It is currently at 30% for loans and 5% for credit cards.
In the health sector, the government will waive import tariffs on some medical and hospital products. These purchases will also be facilitated by bureaucracy to enter the country. Public banks are informing customers about the existence of credit lines to provide working capital in times of difficulty. The source of the information is the newspaper O Estado de S. Paulo.