Good morning! Today, we talk about how high levels of debt present risks for the economy. Petrobras’s new leader. WhatsApp’s new feature worries anti-disinformation experts. And an impeachment request already?
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Indebtedness levels at a year-end high
Since the pandemic, the rate of Brazilian households in debt has risen 14 percentage points to 77.9 percent, according to a recent report by the National Confederation of Commerce (CNC). The rate jumped by 7 points last year alone, showing that millions of Brazilians are struggling to make ends meet amid a sluggish economy and persistently high unemployment.
- Additionally, 11.3 percent of families are unable to repay their debts — an all-time high. According to the CNC, the increase coincides with the monetary tightening process that the Central Bank began in the first half of 2021.
State of play. Debt can fuel consumption. But a look under the hood shows that Brazilians’ debt is not of the “good” kind. Only 7 percent of debt comes from home loans, and 86 percent of indebted families...