Brazil deficit jumps to 7% of GDP as coronavirus deaths mount

Brazil's 2020 deficit is approaching 500 billion reais ($96 billion), or 7% of gross domestic product, even before a state aid proposal of up to 222 billion reais to tackle coronavirus is factored in, the economy ministry said on Saturday. In 2019, the deficit was 61 billion reais or 0.9% of GDP, the ministry said.

"It is important that any new fiscal impact is discussed carefully to avoid excessive growth of the primary deficit and public debt of the public sector beyond what is strictly necessary to reduce the economic and social impacts of the coronavirus crisis," the ministry said in a statement. For the second consecutive day, Brazil's President Jair Bolsonaro took to the streets on Saturday. A far-right former army captain, Bolsonaro has chafed at social distancing measures imposed by state governors and even his own health officials.

He wants to see the economy re-started, arguing that extended shutdowns pose a greater risk than a disease he calls a "little cold." On Saturday, Bolsonaro visited a field hospital being built near the capital Brasilia and greeted supporters who flocked to see him.

Brazil is the worst-hit country in Latin America by the coronavirus outbreak. On Saturday, Brazil's health ministry said 1,124 people had died as a result of the outbreak, with 20,727 confirmed cases.

($1 = 5.1930 reais)