Brazil’s economic safety net has frayed as the government fully phased out its COVID-19 emergency aid program in late 2021, leaving millions of residents struggling amid stalled recovery efforts. Monthly payments of $110, introduced in April 2020 to assist vulnerable households, were reduced to $55 in September before ending entirely in December.
With unemployment hovering near 14% and inflation hitting a six-year high, families report cutting back on essentials like food and medicine. Analysts warn the abrupt cessation of aid threatens to reverse temporary poverty reductions achieved during the pandemic’s peak.
\"The economy hasn’t regained momentum, and withdrawing support too early risks deepening inequality,\" said Rio de Janeiro-based economist Luiza Fernandes. Informal workers, who comprise 40% of Brazil’s workforce, remain disproportionately affected by ongoing restrictions and reduced consumer spending.
Reference(s):
cgtn.com
