Business

Recession made Brazil poorer, more unequal

Recession made Brazil poorer, more unequal
Pockets of poverty in Manaus. Photo: Guenter Manaus/Shutterstock

Brazil has always been haunted by obscene levels of inequality. Over the past four decades, however, things slowly improved, as shown by the country’s declining Gini index—the World Bank’s measurement of inequality. Levels of economic disparity dropped in recent years due to favorable demographic trends, cash transfer programs, and macroeconomic stability. Since the late 1970s, the top 10 percent lost some of its share in Brazil’s wealth in favor of the bottom 10 percent.