After decades of improvements, Brazil suffers from both a decline in income and an increase in inequality

Fernando Canzain – Folha de Sao Paulo, 03/24/2016

With the political and fiscal crises that started last year, Brazil is undergoing a combination of income decline and an increase in inequality for the first time since 1992. According to specialists, there have been instances where income and inequality have worsened separately, but this is the first time in which both deteriorated simultaneously.

Unemployment, inflation, decline in investment and the fiscal crisis caused a series of negative consequences which eventually started to affect the social disparities across the country. Economists say that until 2014, Brazil had a surprising increase in income and decrease in inequality, even with all the macroeconomic problems. Yet, the recession makes these consequences inevitable, and with an expressive decrease of 3.2% in income per capita there exists the necessity for national economic readjustment.

Summarized by: Julia Fonteles and Therese Kuester

Read the Original Article in Portuguese…



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