Coronavirus Continues to Interfere with Business

We’re a year into the Coronavirus pandemic and Brazil is on its 4th health minister. The last minister, Eduardo Pazuello, was an army general with no public health experience. Meanwhile, President Jair Bolsonaro is telling Brazilians to “stop being sissys” and that Covid is nothing more than a little flu.

Yet 300,000 people are dead, ICUs are filled to capacity and less than 5% of the population is vaccinated. And the situation in Brazil seems to be getting worse by the day.

Local businesses have been hit hard by the pandemic. Earlier this month, Brazil’s most populous state, São Paulo, went into another lockdown. Bars and restaurants can only offer delivery; non-essential businesses are closed; and curfews prevent people from driving at night except to get medications or for emergency services.

At the same time, demand for services from foreigners is increasing. Some want to get married in Brazil while others want to buy investment properties or start a business. There’s no doubt that the devaluation of Brazil’s currency is behind the surge. For example, a home that cost approximately US$170,000 in 2018 is likely to cost only US$100,000 now.

The question is if Brazil can weather the storm or if the economic impact of the pandemic will grind business to a halt. Perhaps the real question is whether Brazil’s institutions, like notaries and government offices, can find ways to capitalize on the international interest and facilitate rather than inhibit foreign investment.