Brazil’s economic downfall continues, affecting luxury too
Latin America’s biggest economy Brazil faces a troubling slump, with inflation close to 10% and unemployment rising steadily. Official figures suggest the economy is slipping into recession, and set to contract 2% this year.
Austerity measures, currently in place, have yet to show results. If things continue the way they are, with tax cut reversals and political crises, they are sure to lower the boom on Brazil.
Meanwhile, Brazil’s two biggest private banks are expecting a prolonged recession. Itau is forecasting a 2.2% contraction this year and 0.2% contraction in 2016. Its rival, Bradesco, sees the Brazilian economy dropping 1.8% this year and flat-lining next year.
Brazil’s luxury market has already been directly hit, for more than a year showing flat performance, despite several new luxury store openings.