( Brasilia, 4th August 2020 ) The crisis caused by the COVID-19 epidemic may cause the living standards of Brazilians to fall the most since the 1940s, regressing to the level more than 10 years ago, and GDP in 2020 ( GDP) is expected to decline by 6.7%. According to a survey conducted by the Brazilian National Business Federation (CNC), Brazil's per capita income in 2020 may be reduced to 32,200 riel in the economic crisis of 2015 and 2016. If the prediction is true, Brazilians will return to the 2008 standard of living.
Be poor overnight without saving
Benders, senior economist at the Alliance, said that before the outbreak, the low growth between 2017 and 2019 has made Brazilians feel that their lives have not improved, and it is now even worse. Mereles, president of Locomotiva, a market consulting firm, said that the Brazilian economy is like a roller coaster, going up and down, and many Brazilians who have no habit of saving money become poor overnight. However, per capita income is only an average value and cannot reflect the reality of everyone under the epidemic. According to a survey conducted by the non-governmental organization Oxfam, the wealth of Brazilian billionaires increased by US$34 billion (about 143.4 billion ringgit) between March and July.
Banders' assessment pointed out that when the privileged class becomes richer, the economic losses of the lower class are often greater; Brazil's per capita income must increase, and the poverty of most people can be improved.
Another survey conducted by the FGV Foundation pointed out that the Brazilian government has provided low-income people with a monthly emergency subsidy of 600 riel (approximately 476 ringgits) since May, reducing the proportion of the extremely poor in Brazil to the lowest level in the past 40 years (3.3%). , But the effect is only temporary, because the cost of this plan is very high. Brazil "Encounters for a Better Life" organized the distribution of crops, non-perishable food and sanitary supplies to people in need during the epidemic.
According to a survey completed by Locomotiva, a market consultancy company commissioned by the São Paulo State Daily, in addition to more than half (54%) of the respondents indicating that their living standards have decreased, 6 out of 10 people predict that they will spend 1 Recover the economic losses caused by the epidemic in more than one year.
Give up private school domestic helper
In addition, one-third of the respondents who have health insurance, their children attending private schools or hire domestic helpers, said they must give up at least one of these services. According to data from the Brazilian Ministry of Health, 283,000 people cancelled their private medical insurance contracts during the epidemic, leaving 46.8 million users.
The Association of Private Schools in Sao Paulo State (Sieeesp) pointed out that in May, the arrears rate of private schools in Sao Paulo was about 32.1%. Parents with reduced income or lost jobs have transferred their children to public schools or other cheaper options.
2.75 million confirmed and 94,000 dead
Brazil's epidemic is the second worst in the world
According to the latest coronavirus epidemic data from the Brazilian state health departments, Brazil currently has a total of 2.751665 confirmed cases and 94,702 deaths. Brazil is the second worst country in the world, after the United States.
Brazilian President Bolsonaro’s chief of staff, Bragg Nito, tested positive for the crown disease and is the seventh chief of Brazil infected with the disease. Foreign media reported on the 3rd that Nito's office issued a statement stating that Nito had no symptoms or felt unwell. He will continue to be isolated until new inspections and medical evaluations are released, and will continue to work remotely. Last week, Brazil's first lady and a cabinet minister were both diagnosed with the virus; Bolsonaro had also been infected with the virus, but the latest test showed negative. Bolsonaro told the media last week that he had "mold" in his lungs and was taking antibiotics. He said today that he is in good health and has recovered. He did not provide more details about his health.
**Info & Image are taken online (Associated Press)
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