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. Forecast for inflation decreased 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 just 0.02%. Which basically means stability.
This number was released by the Ministry of Economy through the 2020 budget income and expenditure report.
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 research conducted by the Central Bank. However, there are already financial institutions estimating a contraction in GDP in 2020. This translates into a new slowdown in the economy.
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 growth was 1.3% in both years.
Measures announced
In recent days, the economic branch of the government has announced a sequence 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 of retirees and pensioners, and the proof of suspension of retirees' lives, among others.
- On March 16, it announced three months for depositing FGTS, the anticipation of the second installment of the 13th INSS and the Bolsa Família reinforcement.
- This Wednesday (18), it announced that monthly aid of R$ 200 will be released to self-employed people, in a package of R$ 15 billion to 'underserved people'.
- On Thursday (19), the government announced that it will pay for the first 15 days for workers who are sick due to the coronavirus, and that it plans to pay aid for workers who receive up to two minimum wages affected by the reduction in working hours and salaries.
For more information about the impact of coronavirus on the economy, Click here.
