Credit Contraction and Firms’ Health

BRAZIL ECONOMICS - Report 29 Feb 2016 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

Fixed capital investments have been falling since the third quarter of 2013, and the steep downward path of demand gives no hope of recovery. The contraction of credit to companies, both for expansion and working capital, is acting in the same direction.

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