In crisis, part of social improvements begin to be reversed, says FGV
This article was translated by an automatic translation system, and was therefore not reviewed by people.
The Brazilians with higher incomes, members of Class A and B, were those who suffered from more intense the effects of the worsening international financial crisis, from September last year. In January this year, however the losses were even greater for this portion of the population, which includes those with household income exceeding U.S. $ 4807 monthly, and have extended to lower income ranges, such as class C (with incomes between R $ 1,115 and U.S. $ 4,807).
According to a study released today (8) by the Getulio Vargas Foundation (FGV), the classes A and B that accumulated in the last five years to the pre-crisis period, an increase of 35% stake in the Brazilian population, recorded fall of only 2.74% in January. Have the class C, which had increased its stake by 25% since 2004, in the same month recorded a loss of 2.17%.
Moreover, the poorer classes, who had lost members, which in most cases represented processes of social ascension, were moving around. Class D, which includes Brazilians with income between $ 804 and U.S. $ 1,115, accumulated loss of 15.9% over the last five years before the crisis and recovered only 3.03% in January. The class E, the lowest in the pyramid, with an income of up to $ 804, accumulated loss of 40.3% since 2004, and the first months of this year rose 6.73%.
According to the economist Marcelo Neri of FGV, for study, a framework for social improvements achieved in recent years begun to be reversed, especially from January
"The image of the changes in Brazilian society after the crisis is like a mirror that reflects the opposite of what was happening before the crisis. Who wins loses and vice versa. From, especially January, there was a sudden change of trajectory of the indicators social in the country, "he explained.
Neri also stressed that the crisis is considered atypical, as it reaches a more intense part of the population with higher income, it also causes problems for the poorest. He says the process of reducing social inequalities in the country, observed in the last seven years, remained stable in January.
According to the survey of FGV, areas of the economy most affected were those related to industry and financial sector. They are the natural channels of transmission of the crisis and since January have been hardest hit, he said.
Despite the critical scenario, the economist says the FGV is optimistic about the instruments that the country has to fight these effects.
According to Neri, one must push the internal market to spin the wheel of the economy. He cited the reduction of tax and interest rate practiced in Brazil, the temporary extension of the values passed through population policies of transfer income, such as Family Allowance, and the implementation of projects related to the Growth Acceleration Program (CAP ) as measures to reverse the consequences of the crisis.
"Brazil has a real attack to deal with it, but you must use the right tools and the necessary speed," he said, believes that Brazil will take some time to recover the losses deepened in January.
Source: Agência Brasil
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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