Elizabeth Johnson

Managing Director, Brazil Research

Grace Fan

Director, Brazil/Latin America Research

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Brazil: Consumer recovery still on hold

Overview

After two years of recession, cash-strapped households could receive some temporary relief as workers are granted access over the next five months to up to R$43 billion (US$14 billion) in former severance payments that until now have been held in the workers’ unemployment fund (FGTS). This measure will breathe some life into consumer demand starting in Q2/17. However, employment indicators are unlikely to rebound before H2/17, which means that a strong recovery in spending is still...

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