This update is a consequence of the coronavirus on the economy. According to the government, without a state of emergency declaration, R$37.5 billion in spending would have to be blocked. Inflation forecast has been reduced to 3.05%.
Less than 10 days ago, the estimate was lowered to 2.1%. Now, the GDP (Gross Domestic Product) growth forecast for 2020 is just 0.02%. This essentially means stability.
This number was released by the Ministry of Economy through the 2020 budget revenue and expenditure report.
GDP is the sum of all goods and services produced in a country and serves to measure economic development. The recent revision of this figure was triggered by the impact of the coronavirus pandemic on national economic activity.
Last week, the market projected a 1.68% increase in GDP this year, according to a survey conducted by the Central Bank. However, some financial institutions are already estimating a GDP contraction in 2020. This translates into a further economic slowdown.
In 2019, data from the Brazilian Institute of Geography and Statistics (IBGE) show that GDP grew 1.1%, the weakest performance in three years. In 2017 and 2018, growth was 1.3% both years.
Measures announced
In recent days, the government's economic branch has announced a series of measures to provide better health services for the population. In addition to seeking to prevent the economic crisis from having a disastrous impact on employment relationships:
- On March 12, the government announced the advance payment of the 13th salary for retirees and pensioners, and proof of the suspension of life for retirees, among others.
- On March 16, he announced three months for FGTS deposits, the advance of the second installment of the 13th INSS and the Bolsa Família reinforcement.
- This Wednesday (18), he informed that monthly aid of R$ 200 will be released to self-employed workers, in a package of R$ 15 billion to 'underserved people'.
- On Thursday (19), the government announced that it will pay the first 15 days for workers sick with coronavirus, and that it plans to pay aid to workers who receive up to two minimum wages and are affected by the reduction in working hours and wages.
For more information on the impact of the coronavirus on the economy, Click here.