“It is not isolation that affects the economy, it is the pandemic,” says Meirelles



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The former Minister of Finance and current Secretary of Finance and Planning of São Paulo, Henrique Meirelles, said today that the coronavirus pandemic, and not the isolation measures against contagion, is the true culprit of the economic crisis affecting the state and to the State. Brazil Today, Governor João Doria (PSDB) extended the quarantine in São Paulo until at least May 31.

During a press conference held today at the Palácio dos Bandeirantes, he stated that it is a mistake to say that quarantine causes problems for the economy. He cited the example of the domestic services sector, which was reached even without imposing restrictions.

“There is a misconception that social isolation, quarantine, is causing the economic crisis. It is just the opposite. The crisis is caused by the pandemic. It seems obvious, but in the discourse of many, even in the spheres of power, they are acting in the opposite direction. The sector most affected by the crisis was domestic services, which were not subject to any restrictions. However, it was the sector most affected by people’s concerns. What affects the economy is the pandemic , not the measures to combat, “he stressed.

Meirelles did not mention names, but President Jair Bolsonaro (without a party) is one of the main critics of social isolation measures and often associates them with the economic crisis and unemployment. Yesterday, accompanied by the Minister of the Economy, Paulo Guedes, he went to the STF (Federal Supreme Court) for an emergency meeting with businessmen and the president of the court, Dias Toffoli, in which he again defended the resumption of commercial and economic activities. At the meeting, Guedes said “the economy is beginning to collapse.”

At today’s press conference, Henrique Meirelles noted that the economic recovery is directly related to the control of the 19 covid pandemic.

“As a result of the experiences that took place in other countries that have passed the peak, economic activity begins to return after the pandemic is under control. The quarantine is designed to effectively combat contamination,” he said.

The rules for resuming trade are in the São Paulo Plan and are conditional on three factors: sustained reduction in cases of covid-19 for two weeks, social isolation greater than 55%, and the ICU occupancy rate at most 60%.

So far, the situation is opposite in São Paulo. Adherence to social distance has closed at 47% in the last three days. The contagion curve is on the rise and the ICUs in the São Paulo Metropolitan Region are 89% occupied.

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