Brazilian Senate approves bailout of $ 22 bn to states and municipalities

The Senate approved on Saturday (2), with 79 votes in favour and only, on the contrary, a financial aid of R$ 125 billion ($ 22 billion) to states and municipalities to combat the effects of the pandemic of the covid-19. The amount, provided for by the Federative Program for Confronting the Coronavirus (PLP 39/2020), includes direct transfers and debt suspension. The proposal will allocate R$ 60 billion ($11 billion) in four monthly instalments.

Source: Jornal do Brasil

E-commerce gains 4 million new customers in the pandemic and accentuates physical retail crisis

Forced to close their doors by the coronavirus, Brazilian retailers increased their presence in e-commerce in a few weeks. Consumers, prevented from taking to the streets, bought 30% more on the internet in April compared to March. The figures are from the Brazilian Electronic Commerce Association (Abcomm), which observed a jump in the virtual sale of toys (400%), sporting goods (200%) and cosmetics (80%).

Source: Epoca Negocios

With unemployment, number of micro-entrepreneurs rises 12.6% in the first quarter

With high unemployment in Brazil, the number of micro-entrepreneurs continued to grow in the first quarter. The number of MEIs (Individual Micro-entrepreneurs) rose 12.6% in relation to the same period of the previous year. In the other categories, there was a decrease of 5.8%. MEIs represented 81.7% of the cases of company openings in the first quarter. The survey shows that the Services sector represented 62.5% of openings in the period.

Source: UOL Economia

Coronavirus crisis can take up to $ 90 billion from consumption

The coronavirus crisis can take up to $ 90 billion from the pockets of Brazilians this year. The retraction will lead to reduced demand and production in several sectors, undermining the strength of the post-pandemic recovery. Areas such as tourism and transport already feel the contraction in demand but based on the drop-in consumption observed in other crises, the tendency is for the decline to spread to other segments, even in the food sector.

Source: Folha

Falling revenues should lead to a wave of revision of concession contracts in Brazil

The sharp drop in demand and the loss of revenue due to the coronavirus started a wave of renegotiation of concession contracts. The alternatives range from extending the term of the concessions to adjusting the tariff. Social isolation caused a drop of up to 98% in passenger movements at airports; highways lost, on average, 30% of revenues; and urban transport fell by up to 70%.

Source: Exame