Friday, September 21st 2012 - 06:23 UTC

Brazilian middle class expected to move a trillion dollars this year

Brazil's middle class which now numbers 104 million equivalent to 53% of total population (38% ten years ago), is likely to move 1 trillion Reais this year (approx a trillion dollars), government estimates show.

Families earning between R 291 and R 1.019 per capita per month are middle class

If Brazil's middle class were the population of a single country, it would rank 18th on a ranking of the top 20 consumer countries in the world - the “consumption G20,” according to World Bank data.

When considering the countries with the biggest populations, Brazil ranks fifth - trailing China (the first), India, the US and Indonesia.

“If Brazil's middle class formed a country, it would be the 12th largest, behind Mexico,” says Minister Moreira Franco, of the Brazilian Presidency Department of Strategic Affairs.

After nearly a year of study, the Department of Strategic Affairs' technical commission established criteria to classify the population according to its income bracket.

Families that earn between R 291 and R 1.019 per capita a month are part of the middle class. The US dollar trades at the equivalent of two Reais.

The middle class was divided into three subgroups: low-middle class (per capita income between R 291 and R 441), middle-middle class (from R 441 to R 641 per person) and upper-middle class (from R 641 to R 1.019). In US dollars this represents monthly per capita income of between 143 and 502 and with “a low probability of sinking back into poverty in the near future”.

After technicians considered projections based on national figures released by the IBGE, they estimated that Brazil's middle class is likely to move R 1 trillion this year.

Most of the income of Brazil's middle class (46.1%) is in the southeast region. Data of the Data Popular institute, which participated in the project, show that the Northeast represents 22.2%. The South has 16.45%, the Mid-West 8.4% and the North, 6.9%.

Renato Meirelles, director and partner of Data Popular, highlights that 71% of Brazil's middle class said they don't think paying instalments “is a big problem.”

The interpretation is ambiguous. ”People may not have the financial knowledge to deal with credit. Or, as they have part-time jobs, and they consider them in their budgets, they know they'll get by”.
 

9 comments Feed

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1 Idlehands (#) Sep 21st, 2012 - 08:30 am Report abuse
What does “move” mean in this context??? Spend?
2 vestias (#) Sep 21st, 2012 - 10:51 am
Comment removed by the editor.
3 LatAm (#) Sep 21st, 2012 - 02:17 pm Report abuse
you should fix the title of the article: last time I checked 1 trillion reais was not = to 1 trillion dollars
4 ChrisR (#) Sep 21st, 2012 - 09:18 pm Report abuse
1 USD = 2.02433 BRL as of 18.00 on 2012/09/21 UYU time.

So it's HALF-A-TRILLION USD at best.

Fanciful comparisons of a SECTOR of Brasil with other countries such as Mexico is just laughable.

We can however see the drag of the poor masses in Brasil impinges on the aspirations for the country by these 'government analysts'.

Frankly it's like me saying if my aunty had bollocks she would be my uncle. It's as meaningless as that.
5 Fido Dido (#) Sep 22nd, 2012 - 12:40 am Report abuse
“Frankly it's like me saying if my aunty had bollocks she would be my uncle. It's as meaningless as that.”

And meaningless as your ( a clown that claims to live in Uruguay and can't even speak one word of Spanish) comments with your opinions and so called facts based from “web” research.
6 ChrisR (#) Sep 22nd, 2012 - 11:16 am Report abuse
@5 Fidi Dildo

So, let's get this right.

Are you accusing me of not living in Uruguay?
7 TipsyThink (#) Sep 22nd, 2012 - 01:11 pm Report abuse
i dóñ't guéss any British livés iñ Urùguay.
8 British_Kirchnerist (#) Sep 25th, 2012 - 01:09 am Report abuse
#6 What does it feel like to have your own story (I think its true, myself, just like mine) questioned?!
9 ChrisR (#) Sep 25th, 2012 - 11:56 am Report abuse
@8 British_Kirchnerist

I have never questioned your claims of living in Scotland once you responded to my original challenge, did you not see my other post disagreeing that you were aliased with one of the Malvanistas?

Dildo always resorts to verbal abuse when he has lost the argument. He is not questioning where I live but attempting to goad me, which is why I replied with a question which he has not resonded to.

Although I have stated you cannot be an AG troll because of the level and command of English, that does not preclude me from thinking poorly of you for you irrational support of such a despotic government and your frankly juvenile thoughts about TMBOA.

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