Around 22 percent of Brazilian industries are set to run out of business within the next 30 days, while 45 percent of them could do so within three months, the Brazilian National Confederation of Industry has found. Three-quarters of Brazilian industries have been heavily impacted by the coronavirus crisis, with 82 percent experiencing a drop in profits. For nearly half of them, the decrease in profits exceeded 50 percent.
Nearly 86 percent of the company owners believe the industrial sector will experience an overall negative impact in 2020.
Even companies that experienced an increase in profit are uncertain about their future. The survey found that only 26 percent of them believe they can maintain their activities for more than a year. Another 23 percent of them believe they will run out of business in between six months and a year.
In regard to jobs, two-thirds of the companies opted to not dismiss their employees. According to the confederation, however, nearly 8 million individual contracts to reduce wages and working hours were signed since the beginning of the pandemic. Of the companies who relied on lay-offs, nearly 80 percent of them see it as a temporary measure.
Back in February, The Brazilian Report’s Brazil Daily newsletter explained how, even before the pandemic, expectations regarding the industrial sectors were sparking a wave of “early pessimism” in the country in 2020.Support this coverage →