The country will experience the biggest economic downturn of all time. The government fears paralysis and social crisis starting in July.
The Ministry of Economy, headed by Paulo Guedes, admits to a sharp drop in the economy, which is expected to shrink by 4,7% in 2020. The projected scenario is one of bankruptcies and unemployment in the second half of the year. This is the largest drop in GDP since 1901, when growth began to be measured.
247 - Minister Paulo Guedes was sowing the illusion that there would be an economic recovery in the second half of the year. But he is facing reality and is becoming convinced that the fall will be brutal, and he already predicts that the country will plunge into social chaos in July.
The Secretary of Economic Policy, Adolfo Sachsida, released this Wednesday (13) a projection of a 4,7% drop in GDP (Gross Domestic Product). Previously, there was a forecast of a 0,02% increase, journalists report. Julio Wiziack and Bernardo Caram in Folha de S.Paulo.
A government technical note estimates that each week of social isolation, necessary for the control and prevention of the coronavirus epidemic, prevented the country from generating R$ 20 billion in wealth. If confirmed, it will be the biggest drop in GDP since 1901, according to IBGE data.
The release of the data is being used by Paulo Guedes to intensify pressure for the easing of social isolation measures. Guedes is thus aligning himself with Jair Bolsonaro's discourse.