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
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 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
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.
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%.