Recession gifts doom to Brazilians this Christmas

Brazilians have cut down Christmas spending this year as the weak economy depressed consumer confidence.

Brazil’s economy shrank 1.7 percent by the third quarter of 2015, compared to the previous quarter as higher interest rates on store credit and elevated inflation are factors behind this year’s decline in existing-store sales.

Jose Batista, a chef said: “These days I just go to the supermarket to see sales promotions. This year prices have increased again and everything is more expensive.”

Brazilian consumer confidence is at its lowest levels since the 2008 financial crisis as the fourth straight year of high inflation and mediocre growth in Latin America’s largest economy takes a toll on the jobs market.

Unemployment in the country rose to 7.5 % in the month of November, a 2.7 % difference compared to November 2014 while the average family’s debts swell to nearly half of their annual income, up from one-third in 2008.