Heavy burden

BRAZIL ECONOMICS - Report 17 Aug 2026 by Alexandre Schwartsman, Cristina Pinotti and Diego Brandao

Economic activity slowed more than anticipated despite several stimulus measures announced for this year, concentrated in particular on credit extension. We see two kinds of limitations. First, the credit channel depends on institutions that select borrowers according to their own criteria, which makes lending more difficult, especially given the smaller share of public banks compared with past experiences. In addition, record debt-service burden restrict households’ ability to take on new debt. The total stock continues to slowdown, even as lending is being spurred in an environment of high indebtedness, subject to labor-market shocks. As a result, risks to the financial system increase without the government managing to boost activity as intended.

Now read on...

Register to sample a report

Register
Must have at least 8 characters
Sign-in
Forgot your password?
Copyright 2026 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.