Family consumption is curbed by default and debt

Household consumption grew 0.2% in the first quarter, compared to the last three months of 2022. It is the lowest rate in seven quarters, according to the Brazilian Institute of Geography and Statistics (IBGE). According to analysts, two factors that have a negative influence are default, which is at record levels, and the commitment of families to debt.

The number of defaulters increased in April for the fourth consecutive time, points out Serasa Experian. There are 71.4 million people with credit restrictions, or 43.8% of the adult population. It is the highest number in the historical series started in March 2016.

Families also have more financial commitments. Research carried out by the National Confederation of Trade in Goods, Services and Tourism (CNC) points out that, in April, 78.3% of families had outstanding debts. The entity’s expectation is that the situation will worsen in the coming months. “The risk of default has increased in the middle class”, says economist Izis Ferreira, from the entity.