Credit Demand in Brazil Drops 18% in the First Half of 2024

Neurotech, a company specialized in data analysis, released a concerning report on the credit situation in Brazil. According to the Neurotech Credit Demand Index (INDC), the search for financing in the country registered a significant decline of 18% in the first half of 2024, compared to the same period of the previous year.

Natália Heimann, leader of the Data & Analytics Business Unit for Credit at Neurotech, emphasizes that this downward trend is not recent. "Credit demand has been operating in negative territory since August 2022, with rare exceptions," she explains.

Sectoral analysis reveals that the financial segment had the smallest decline in June (-22%), followed by retail (-21%). Surprisingly, the services sector showed positive growth of 30%. For the cumulative half-year period, retail was the most affected, with a decline of 30%, while banks and financial institutions receded by 14%. The services sector remained resilient, with an increase of 18%.

Within retail, the supermarket category was the only one to record growth (4%) in the first half, indicating a prioritization of essential spending by consumers. Department stores were the most impacted, with a significant decline of 61%.

Natália Heimann does not foresee prospects for improvement in the short term. "For the coming months, we do not anticipate a significant reversal of this scenario, also due to the maintenance of the Selic rate at a high level," she states.

This scenario of retraction in credit demand reflects the economic challenges faced by Brazilians, with constrained income and a focus on essential expenses. The situation demands attention from economic sectors and may indicate the need for measures to stimulate access to credit and boost the economy.