5,525 Companies Went Bankrupt In Brazil Last Year: “It’s A Legitimate Credit Crisis”
by Tyler Durden
ZeroHedge.com
02/16/2016
Well another day, another horrible piece of economic data out of Brazil.
Core retail sales in South America’s most important economy slid 2.7% M/M in December, erasing a meager gain the country eked out in November when the numbers got a boost from promotions.
Broad retail sales, on the other hand, declined 0.9% marking the eleventh decline in thirteen months. They’re now off more than 16% since peaking in August of 2012.
The breakdown is a veritable disaster, with sales of office and telecommunications equipment down 9.1%, furniture and appliances down 8.7%, and clothing and footwear lower by 2.1%. Goldman sums it up: “The near-term outlook for private consumption and retail sales remains challenging owing to the continuing deceleration of credit flows from both private and public banks, high levels of household indebtedness, declining employment and real wages, higher interest rates, rising local and federal taxes (including via inflation), higher utility and transportation tariffs, heightened economic and political uncertainty and depressed consumer confidence.” Oh, is that all?
Here’s what “disaster” looks like:
The Rest…HERE
