The federal government, together with governors and mayors, will provide R $ 88.2 billion ($ 17.6 bn) in response to Brazilian society, but needs support for the approval of legislative measures of extremely high fiscal importance and also for health and sanitation issues. The government will also transfer R $ 16 billion ($ 3.2 bn) to offset the loss in the collection of State and Municipal Participation Funds. The package also includes operations to facilitate credit, totaling R $ 40 billion ($ 8 bn).
The Brazilian stock market suffered the biggest negative impact with the coronavirus among the markets in the world when registering a drop of 52% in dollar in relation to the month of January, according to a survey made by the American bank Goldman Sachs. This is the worst bear market, which is defined as a drop of more than 20% for the stock market since the great financial crisis of 2008.
The deficit in the trade for chemical products totaled $ 31.3 billion in the last 12 months (March 2019 to February 2020) and the sector is already beginning to realize the first impacts of the new level of trade with the worsening of the coronavirus pandemic. In the first two months of this year, the accumulated deficit in the chemical trade balance reached $ 4.4 billion. The value represents a 10.5% drop compared to the same period last year. Imports fell 9.1% and exports fell 5.8% in the two months.
The pandemic is expected to bring down exports in general in the first half of this year, but agricultural commodities will be less affected and may recover quickly in the second half. The CNA (National Confederation of Agriculture and Livestock of Brazil) does not identify an interruption of Chinese imports of Brazilian agricultural goods. Between January and February, there was an increase of 9.7% in the trade of grains, oils and food in the country.
The demand for flights in Brazil continues to plummet due to the coronavirus, according to data from the Brazilian Airlines Association (ABEAR). This week, the association’s members recorded a 75% drop in demand for domestic flights and a 95 % cut in the international market compared to the same period in 2019. In fact, the segment expect a reduction of 100% (in demand) is possible for a number of destinations.