The number of defaulters in Brazil ended the first quarter of the year up 4.5% compared to the same period in 2023, according to data from Boa Vista. However, on a monthly basis, the indicator fell by 0.46 per cent in March compared to February in the seasonally adjusted series, marking the eighth consecutive decline.

In the original data series, the indicator slowed from 3.0 per cent in February to 2.1 per cent in March 2024.

This was the eighth consecutive decline in the indicator, which was already expected given the improvement in the underlying factors from month to month, especially the employment figures,’ says Boa Vista economist Flávio Calife.

Boa Vista’s Credit Recovery Indicator increased by 11.83 per cent in the first quarter of 2024 compared to the first quarter of 2023. On a seasonally adjusted monthly basis, the indicator expanded by 0.46 per cent in March, and on a 12-month cumulative analysis, it fell from 20.6 per cent in February to 19.7 per cent in March.

Credit recovery has shown strong growth in recent months, driven by the improvement in consumers’ financial conditions, with an increase in real income and a reduction in debt, as well as the debt renegotiations provided by the Desenrola programme,’ adds Calife.

Original Story: Infomoney
Edition and translation: Prime Yield