Gloomy news keeps on hitting Brazil. Latest data reveal, facing headwinds from higher inflation, lower value of Brazilian Real, higher interest rate is leading consumers to spend lesser.
- Since December last year, retail sales have been slowing down sharply. Retail sales dropped by -0.4% m/m. Median estimate was growth of 0.7%. This is fourth decline in five months since December.
Brazilian economy is expected to move through painful recession this year. Approval ratings have fallen sharply, for scandal hit government. With household consumption going down, unemployment edging up and inflation at 11 year high, Brazilian economy is about to face worst recession in 25 years.
Brazilian Real is currently trading at 3.1 against dollar, faces further downside against Dollar or basket of currencies.
