Economist: Covid-19 spending could amount to 30 percent of GDP

Ana Paula Vescovi, the chief economist for private bank Santander, says the Covid-19 fight might cost Brazil up to 30 percent of its GDP. She told newspaper Valor that the amount refers to public spending and monetary incentives, including credit lines, emergency salaries, and bailout programs for local governments. 

Ms. Vescovi argued for tax reform, and the importance of helping “most vulnerable” businesses, including small- and medium-sized enterprises. She also defended the extension of the three-month national emergency salary. In April, The Brazilian Report explained that a deep economic crisis might await Brazil in a post-coronavirus world.

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