Almost 3 million businesses in Brazil struggled to pay their bills in June, as the economic shocks of the Covid-19 pandemic continue to reverberate around the country. Almost half of them had to postpone paying their taxes in order to manage their accounts, according to a survey by the Brazilian Institute of Geography and Statistics.
The crisis is leading to a major increase in defaults in the country, as demand remains low — and costs high. But evidence suggests that the worst may be yet to come, as there is still no way to envision a proper resumption of many business while the pandemic continues to ravage the country, requiring social distancing measures in Brazilian cities.
According to the institute, 52.9 percent of the companies operating in Brazil struggled to make routine payments during June. The rate is higher among small businesses — with up to 59 employees — than medium-sized or large corporations with over 500 employees: 53, 42, and 29 percent, respectively.
Among the companies that managed to find an emergency credit line to meet their payroll obligations, 76.4 percent relied on government assistance.
Support this coverage →The city of Rio de Janeiro estimates that a Madonna concert this Saturday on Copacabana…
Latin America’s trend of banning opposition candidates from elections has caught on in an ever-growing…
The São Paulo City Council on Thursday approved legislation authorizing Brazil’s largest city to sign…
The preliminary report on AI regulations presented to Brazil’s Senate last week provides a middle-of-the-road…
In 2000, Formula 1 great Michael Schumacher had just racked up his 41st race win,…
Overall, the worldwide economic outlook has improved according to the Organization for Economic Co-operation and…