Brazil’s Consumers are Back and Helping to Drive the RecoveryBy
Brazilians are starting to spend after paying off debts
Consumers are government’s "greatest hope", analyst says
Brazil’s consumers are finally showing signs of life, helping to haul Latin America’s largest economy out of its worst recession on record.
With President Michel Temer’s administration pushing austerity, and investment levels low, consumers are proving a key part of the recovery. After making headway in paying off their debts and rebuilding savings, they are now using their improved financial standing to buy more, according to Andre Perfeito, chief economist at the brokerage Gradual Cctvm.
"Consumption is the government’s greatest hope for the economic recovery," Perfeito said in an interview. "There is good reason to believe that consumption in families, which are more deleveraged, will continue to rise."
These charts illustrate the improving fortunes of Brazil’s consumers:
1. Money in the bank
2. Success in the job hunt
3. Uptick in retail purchases
— With assistance by Rafael Mendes, and Walter Brandimarte