São Paulo reopening fuels business optimism

After almost a year and a half, São Paulo’s retail sector can finally breathe a sigh of relief as the state government announced a lifting of all restrictions on non-essential businesses in place to combat the Covid-19 pandemic. As of now, commercial establishments in the state can return to normal operations without any time limitations and at full capacity. The sector has welcomed the move, after suffering severely during the health crisis. 

However, increasing cases of the coronavirus Delta variant, a rise in indebtedness of Brazilian citizens, and a drop in families’ purchasing power could end up hampering its recovery.

On Monday, São Paulo’s city government also lifted restrictions for all non-essential businesses, as part of its “safe return” plan. 

Bars, restaurants, shopping malls, bricks-and-mortar stores, gyms, beauty salons, museums, cinemas, theaters, and even concert halls with seated audiences can function without restrictions. Event venues can now host corporate fairs, graduations, and weddings. On the other hand, nightclubs and big sporting events with attendance will still face restrictions.  

Moreover, all businesses will still be mandated to follow the sanitary protocols, enforce social distancing and mask use, and avoid overcrowding in their premises. In addition, even though Covid testing will not be mandatory for parties and events, establishments could be fined if agglomerations of people occur, warned the government. 

The full lifting of restrictions is authorized for the entire state. However, it is up to its 645 municipalities to decide whether or not to adhere to...