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Despite Economic Recovery, Brazilians' Income Declined in 2017

04/12/2018 - 12h10

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NICOLA PAMPLONA
FROM RIO DE JANEIRO

The economic recovery has not reached Brazilians' income yet, which declined by 0.5% in 2017, considering wages and other sources, such as retirement plans, pensions, rent and social welfare programs. The fall was driven by salaries, still a reflex of the labor market crisis.

The IBGE (Brazilian Institute of Geography and Statistics) says the average monthly income of the Brazilians who declared having some source of income in 2017 was of R$ 2,112 (US$ 624), while the survey in the previous year showed R$ 2,124 (US$ 627). Considering only those who are employed, there was a 1.3% decline to R$ 2,237 (US$ 661).

"The figures show that Brazil was coming from a very bad situation and it continued very bad," says FGV economist Fernando de Holanda Barbosa Filho. "The recovery at the end of 2017 has not had an effect on incomes yet."

FGV's Brazilian Business Cycle Dating Committee (CODACE) believes that Brazil started to overcome an 11-month recessive period in the last quarter of 2016. In the next year, the G.D.P. had a 1% increase following good results in the agricultural sector and a new surge in investments.

The IBGE survey, however, showed that the lower income affected all strata, ranging from the richest to the poorest. In the 1% group with the highest income in the country, there was an average fall of 2.9% to R$ 27,213.

Among the 5% poorest, a stratum comprised of some 4.5 million people, the situation was even worse: the decline reached 38.16% to R$ 47, while in 2017 the figure was R$ 76.

Translated by THOMAS MUELLO

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