As we explained in our March 20 Daily Briefing and March 23 Weekly Report, experts have grim forecasts for the Brazilian economy heading into a coronavirus-related recession. Estimates for post-outbreak Brazil range from 20 million people out of work to up to 40 million. Total unemployment currently stands at 11.9 million.
Let that sink in. Brazil could have 40 million unemployed workers.
On Sunday evening, President Jair Bolsonaro signed a provisional decree (MP 927) that made workers’ conditions even more fragile, allowing companies to suspend workers’ contracts—with no pay—for up to four months.
The move naturally generated a lot of backlash, with the term “Genocidal Bolsonaro” reaching the top of Twitter’s trending topics in Brazil—and number three worldwide. In response, the President said it would consider revoking that section of the decree.
While the backpedaling is certainly good news for Brazilian workers, it highlights how lost the Bolsonaro administration seems to be. “They have no structured plan. It is like they are throwing things at the wall to see what sticks. The government seems to react according to people’s moods. What is the president’s end goal? It’s getting impossible for companies to prepare themselves for the upcoming crisis,” says economist Daniel Duque, of think tank Fundação Getulio Vargas.
We break down the decree’s key points:
President Lula issued a decree laying the foundations of the program, which was first announced…
The main challenge to keep the future VAT rate from blowing up will be to…
Brazil's IPCA-15 mid-month inflation measurement posted a 0.21 percent increase in April, following the 0.36…
It is not about denying the environmental problems and challenges Brazil faces — that are…
Shareholders of Brazil’s oil giant Petrobras approved in a Thursday general meeting the payment of…
This week, the world celebrates International Earth Day, a yearly call to action to confront…