The Engine of Recovery – Household Consumption

BRAZIL ECONOMICS - Report 02 Oct 2017 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

Evidence that household consumption is the predominant force in Brazil’s economic recovery is building up to an ever more solid scenario. However, doubts exist about the intensity of this movement. The decline of the market real interest rate and improvement in the job market and credit supply are vectors for expanded consumption, but we show in this report that the pace of recovery will be slow, so it is prudent to moderate optimism.

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