Trade and Travel Restrictions: Brazil

Constantly updated information about the situation in Brazil with focus on the general situation, movement of goods and movement of people.
 

overview

A quick overview of the affected areas. Please find more detailed information below.

General Situation

General Situation

Description of the current situation

Brazil is the hardest-hit Latin American country in the coronavirus pandemic and has reached 171,000 deaths (stand November 26th ). After a decrease of the spread of the disease starting by mid-September, since one week now, the average of new cases per day is rising again (47’000 on November 25th) and this trend can be interpreted as the arrival of a second wave. Since mid of July, the State Governors have started to reopen gradually the economy and almost all kind of business are now functioning, as far as the security measures are respected. The situation in the hospitals is still under control, despite increasing of hospitalizations. 
The latest forecast of IMF im September 2020, showing a contraction of the GBP of 5,8% in 2020 was well received. In its report, the IMF pointed out other vulnerability aspects of the Brazilian economy, like high level of public debt (100% GDP) and high  unemployment (13,8%). The Brazilian Real has seen a devaluation of over 40 % in 2020 during the first semester of the year.
 

For updated numbers on COVID-19 in Brazil see: https://www.worldometers.info/coronavirus/country/brazil/ or the Brazilian Health Ministry: https://covid.saude.gov.br/

Government measures

  • The Isolation measures (closing of non-essential businesses, etc.) decided in a first step are now gradually lifted in almost all 26 states. Safety measures like distancing, wearing of mask inside and outside remain in place.
  • Financial support for informal sector workers and low-income families USD 120.-/months) has been extended for 3 more months.
  • Labor law adjustments in order to lower salary payments, suspension of employment contracts, anticipation of vacation days, work from home.
  • Support for companies via postponement of due payments (federal taxes, social contributions)
  • New credit lines for companies from state-owned Federal Savings Bank and Banco do Brasil
  • See https://www.s-ge.com/en/article/news/20202-c3-brazil-covid-economic-trade-related-measures  

Economic outlook (economic development, effects on industries)

  • High government debt and spending
  • Most industries under duress (tourism, automotive industry, production, design etc.) https://blog.euromonitor.com/the-impact-of-coronavirus-in-brazil-uneven-prospects-across-industries/
  • Very diversified economy, some sectors remain stable, in particular agriculture and food industry, mining.
  • Increasing demand for digital solutions.
  • Increase demand for industrial cleaning or disinfecting solutions.
  • Early estimations predict GDP fall of 5,8% in 2020 and a partial recovery of 2,8% in 2021 (based on last release of IMF).
Movement of goods

Movement of goods

Movement of people

Movement of people

Restrictions on entry from Switzerland

  • Since end of July 2020, foreigners are allowed to enter the Brazilian territory by air only and using the main international airport like Guarulhos in Sao Paulo, Galeao in Rio de Janeiro or Juscelino Kubitschek in Brasilia is permitted. Foreigners still need to present health insurance coverage and prove that they have been tested negative before entering Brazil. Returning from Brazil, travelers will have to follow a quarantine of 10 days in Switzerland.
  • For persons travelling from Brazil to Switzerland, the obligation of quarantine has been lifting by the Federal Council. 

Restrictions on mobility within the country

  • No general restrictions on mobility within the country, however, reduced number of domestic flights available. .
  • The use of protection masks in closed public areas as well as outside on the street is mandatory.
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