Business

Brazil throws money at Covid-19, but will the plan work?

Analysts have identified some contradictions in the Economy Minister's stimulus plans, saying they involve very little "new money" 

brazil paulo guedes
Brazil’s Economy Minister Paulo Guedes. Photo: ABr

The federal government announced today that it will dedicate BRL 147.3 billion to fight the negative effects of the Covid-19 pandemic in Brazil. While this is an impressive-sounding sum—it would be enough to cover Brazil’s fiscal debt, for example—experts are unsure whether it will suffice to keep the country from falling into a recession.  

According to analysts from XP Investimentos, while the package is a step in the right direction, the government’s program is limited and consists more of “rearranging” funds than bringing in new money. They estimate that only BRL 31.8 billion of the full total is actually new...

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