Economics
Economic Growth Engine Turns Weak Link in Virus-Stricken Brazil
- Early indicators show historic drop in retail sales in March
- Consumer spending accounts for nearly two-thirds of total GDP
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Brazil is losing one of its most reliable growth drivers as the coronavirus pandemic deals an unprecedented blow to consumer demand, according to a set of leading indicators for the retail sector.
Consumers in March cut spending on everything from big-ticket purchases including vehicles to smaller items such as food and drinks, according to data provider Serasa Experian, which said overall declines were the biggest in decades. That’s put official retail data published Tuesday showing an increase in sales in February into the rear-view mirror.