This week, we show how the pandemic crisis has shrunk the Brazilian middle class, furthering an ongoing trend. Also, drier weather set to become the norm for Brazil, causing droughts in key agro regions.
Pandemic squeezes Brazil’s middle class even further
Not only has the pandemic increased the number of Brazilians living in extreme poverty, it has also caused the country’s middle class to shrink to its lowest size in over a decade. Per a study by the Locomotiva Institute, which focuses on research on middle- to low-income populations, Brazil’s middle class no longer comprises the majority of the population.
- In 2011, the middle class accounted for 54 percent of Brazilians; now, it has fallen to 47 percent, the same size as the low-income population. The upper class comprises just 6 percent of the country.
What happened to the middle class? Roughly 80 percent of middle-class families suffered some loss of revenue in Q4 2020 when compared to the previous year. But many of these families are far from qualifying for government aid programs.
- According to another study, 7 percent of middle-class families lost their entire income after their breadwinners became unemployed.
- Inflation also plays a key part in...