This update is a consequence of the coronavirus in the economy. According to the government, without a calamity decree, it would be necessary to block R$ 37.5 billion in spending. Inflation forecast lowered to 3,05%.
Less than 10 days ago, the estimate dropped to 2.1%. Now the GDP (Gross Domestic Product) growth forecast for this year 2020 is only 0.02%. Which basically means stability.
This number was released by the Ministry of Economy through the 2020 budget revenue and expenditure report.
The GDP is the sum of all goods and services produced in the country, serving to measure the development of the economy. The recent revision of this number was triggered by the effect of the coronavirus pandemic on national economic activity.
In the previous week, the market projected an increase of 1.68% for this year's GDP, according to the survey conducted by the Central Bank. However, there are already financial institutions estimating a GDP contraction in 2020. This translates into a new economic slowdown.
In 2019, data from the Brazilian Institute of Geography and Statistics (IBGE) show that GDP grew by 1.1%. Which was the weakest performance in three years. In 2017 and 2018 the growth was 1.3% in both years.
Announced measures
In recent days, the economic branch of the government has announced a series of measures to provide better health services to 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 anticipation of the payment of the 13th salary of retirees and pensioners, and proof of suspension of life for retirees, among others.
- On March 16, he announced three months for depositing FGTS, the anticipation of the second installment of the 13th of the INSS and the reinforcement of Bolsa Família.
- This Wednesday (18), it reported that monthly aid of R$ 200 to the self-employed will be released, in a package of R$ 15 billion to 'underserved people'.
- On Thursday (19), the government reported that it will pay the first 15 days for a worker sick with the coronavirus, and that it plans to pay aid to workers who receive up to two minimum wages affected by the reduction in working hours and wages.
For more information on the impact of the coronavirus on the economy, Click here.
