Household credit growth in Brazil might be slowing

12 Jan 2013 by Jim Fickett.

The Brazilian economy is heavily dependent on consumer spending, and the high growth rate of recent years was driven in part by a one-off boom in household credit (Demand growth in Brazil driven partly by a one-off pop in household credit). With a high fraction of household income going to debt payments, and defaults rising, the credit boom is long in the tooth, and worth keeping an eye on. The latest data, through December, suggests credit growth might be slowing, though it is too soon to be sure:

(Graph provided by the Banco Central do Brasil's time series management system.)