Severe economic crisis ahead, says Central Bank

Central bank

Economic activity in Brazil has already significantly declined due to the pandemic. From February to March, the Brazilian economy shrank by 5.9 percent, according to the Central Bank’s Economic Activity Index (IBC-Br), considered to be a predictor of the country’s official GDP performance. Over Q1 2020, the economy declined by 1.95 percent compared to the same period in 2019. 

Other predictions also indicate Brazil’s economy faces significant challenges in the near future. The IMF predicts that the country’s GDP will suffer a 6.1 percent drop this year, and another study by the World Bank forecasts that the country will return to the Worlds’ Hunger Map, with a total 14.7 million people below the extreme poverty line — 7 percent of the population.

The Brazilian Report has also covered how the pandemic will affect Brazilian jobs.