Opinion

Brazil’s strong retail results don’t tell the full story

Brazilian authorities said economic indicators show the crisis won't be as dramatic as first thought. But it is too early to celebrate

retail Brazilian authorities said economic indicators show the crisis won't be as dramatic as first thought. But it is too early to celebrate.
Grocery store in Guarani, Minas Gerais. Photo: Ronaldo Almeida/Shutterstock

In the month of May, we saw the reopening of some economies in some Brazilian states. Even though this process has been carried out gradually, this easing of social isolation measures has been reflected in economic indicators, especially those relating to the retail sector. The results released in May were considerably high, though not enough to cancel out the negative result accrued during the first months of the pandemic. The points to be examined are credit to small and medium-sized enterprises (SMEs), unemployment trends, and the appetite for consumption. After the paralyzation of nearly all trade, the results seen...

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