A survey by FGV says that economic stimuli communicated so far represent only 5% of GDP – while in other countries this value is close to 20% of Gross Domestic Product.
The measures announced by the federal government to protect both the population and companies from the undeniable blow that the current coronavirus pandemic has dealt to the national and world economy, amount to more than R$ 365 billion so far.
However, despite the amount of digits, economists point out that it is still a meager movement compared to those measures adopted in other countries.
Faced with the risk of the country returning to a recession. Experts warn that the measures and volume of resources announced are insufficient to protect the economy and citizens.
Manoel Pires, economist at the Fiscal Policy Observatory of the Getúlio Vargas Foundation (FGV), carried out a survey that indicates that the economic stimuli announced so far by the Bolsonaro government represent 5% of the country's GDP (Gross Domestic Product).
And, once discounted the credit measures – loans that the government is facilitating, but which companies will have to pay back in the future – , the value drops to R$ 228 billion, or the equivalent of 3.1% of GDP.
- In Germany, for example, government spending to tackle the coronavirus crisis has already reached 35% of GDP.
- Spain and UK, 17%
- France, 15%;
- And in the USA it is already approaching 10%.
According to the survey.
In the United States, government and parliamentarians reached an agreement for an aid package of more than US$ 2.2 trillion.
Graph with measures announced by countries (as a percentage of GDP)
The calculation also takes into account the project approved by the Chamber of Deputies, which provides for the payment of R$ 600 to informal workers for 3 months. In addition to the new R$ 40 billion emergency credit line for small and medium-sized companies announced this Friday (27).
As much as the payment of R$ 600.00, totaling R$ 45 billion, is the largest expenditure in “new money” among the announced measures. Even so, it represents merely 0.62% of GDP, says the study by Pires.
Summary of measures, value in billions and what they represent as a percentage of GDP:
For more information about the economy and to stay up to date with the impacts of the coronavirus pandemic on the national and global economic scenario, access.
