Defaults falling, according to Magazine Luiza, this scenario encourages retailers and shows a good sign for the country's economy.
The world experienced difficult days after the pandemic period, some countries are starting to react now. Unemployment grew worldwide, some people even saw their income decrease.
Some companies started to work from Home Office, leaving buildings and completely changing their method of remuneration. In this way, default rates grew all over the world, of course Brazil was not left out.
Purchasing power has decreased significantly, directly affecting bill payments, and bank loans have increased. Above all, with higher interest rates, which led to greater defaults and many financial problems.
However, the falling default rate encourages retailers a lot, understand what this issue is like in the country. The time has come to buy what you are dreaming of.
Essential interest rate drop
Initially, less than a week ago, a virtuous cycle of falling interest rates began, which brought hope to the retail market.
The fall in Selic interest rates brought encouragement and life to retailers, it had been 3 years since the Selic had fallen, now a new moment is expected by the market.
What experts expect is that default rates will begin to fall, as they understand that it has already reached its peak. The person who says this is Magalu's CFO, Roberto Bellissimo.
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According to Roberto Bellissimo, the market was anxiously awaiting the drop in Selic interest rates, which would allow greater credit to be granted to customers.
With an increase in the granting of credit, retail sales tend to grow, greatly boosting the country's economy.
Therefore, the next few months should be busy, especially when we reach the end of the year, Christmas tends to be “fatter”. This way, the gift is guaranteed, more credit, more purchasing power.
Selic falling is synonymous with growth
Firstly, Roberto Bellissimo compares the drop in interest rates to what the country experienced, even in the midst of the pandemic.
In 2016, Selic was at 14.25%, when the pandemic hit, Selic fell to an incredible 2%. The country saw 5 to 6 years of decline in the CDI and Inflation, resulting in a period of growth.
This is the same expectation that the market has, with the Selic falling, credit increasing, the result is growth. At least that's what experts are hoping, and in a way celebrating.
Everyone expects growth to be accelerated and last at least 5 years, which would have a very positive impact on the country's retail sector.
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What is expected is a growth of 3 percentage points, for each point of decrease in the Selic, therefore, expectations are high. If it drops from 14% to 7%, the growth will be 20%, a great growth.
The increase in credit results in falling default rates and movement in the economy. In other words, everyone benefits.
With the Selic low, interest-free installments become possible, bringing joy to consumers' hearts. Take advantage of the moment to do your shopping and take home what you want.
