Some lessons from the household consumption boom in Brazil, 2003-2012

Abstract

In the last decade, the Brazilian economy was able-for the first time in history-to combine economic growth, falling unemployment rates, inflation rates under control and a reduction in external vulnerability. In this context, it is believed that one of the most important sources of growth within this period was a consumption boom. Moreover, it is also believed that this process was led by a combination of income distribution improvements and credit growth. This chapter will analyze the household consumption boom by investigating its characteristics and causes.