Skip to main content

Brazil: credit where credit’s due?

The debate about whether or not Brazil is in the midst of a consumer credit bubble has reached fever pitch over the past few days. Our view is that the current pace of credit growth is unsustainable and that, as such, there is a growing risk of a sharp economic slowdown over the next couple of years. But while bad debts are likely to increase as a result we doubt that this will pose a systemic risk to the banking system.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access