Retail sales in Brazil grow in November due to Black Friday

(Bloomberg) – Brazil’s retail sales surged in November as widespread Black Friday discounts temporarily cushioned the blow of rising inflation and a higher interest rate.

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Sales were up 0.6% from the previous month, compared to the median of analyst estimates in a Bloomberg survey that projected no change. Compared to the previous year, sales fell 4.2%, the national statistics agency reported on Friday.

In November, retailers offer deep discounts on products of all kinds before the holiday season. Those offers attracted buyers even after the economy slipped into a recession in the third quarter.

Demand in Latin America’s largest economy has been hit by double-digit inflation and 725 basis points in rate hikes since March. Analysts point out that the waning purchasing power of Brazilians and companies, as well as extreme weather conditions that have decimated farmland, are the main obstacles to activity. Growth is forecast to slow to 0.28% this year from 4.5% in 2021.

Original Note:

Brazil Retail Rises in November Boosted by Black Friday Deals

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