Its been difficult in the past fortnight to avoid stories of the continued indicators of Brazil’s continued economic development.
Veja Magazine dedicated its front page and a significant proportion of its inside content to the fact that Brazils Social Class C is now the dominant force in the country. In the space of just two years, 20 million Brazilians have risen from poverty into the C Class. This is marked by rising consumption and the growing power of a new middle class in Brazil giving the country a leap into the developed world.
The phenomeneon is supported by data from elsewhere too. As Brazzil magazine reports, per capita income has grown 3.05%, exports rose around 22%, inflation has remained under control, 3.9% last year, the benchmark interest rate has fallen from 16.5% to 11.25%. Importantly, these figures have reached the foreign market, bringing further investment and a better image for Brazil among rating agencies. Supermarkets sales up 8% year on year in February. A 66% rise in the spending by Brazilians of overseas travel in the first 3 months of the year. The appearance of Brazil/s first Apple store…well no not quite… see here.
Lots more data from Veja to come in the near future on the site here. As we have reported on here before much of the growth is credit driven, which does get discussed, however little, in fact nowhere does the article discuss the limitations of the official socio-economic classification system here in Brazil. For more on this subject look here!