The evolution of Brazil’s purchasing power

Brazil’s 2014–2016 crisis has left lingering effects on Brazilian society. The massive reduction in inequality levels boosted by the commodities boom of the early 2000s allowed many people to leave poverty. But after 11 straight quarters of negative GDP growth, many of these same people have taken the social ladder in the opposite direction—going back to their previous levels of social vulnerability.

In our Weekly Report, for platinum and gold subscribers only (become one now), we explored how Brazil’s inequality levels grew more — and faster — than in any other period in recent memory. Now, we want to look into how the dynamics of consumption have changed as Brazil experiences its worst economic five-year period on record.