According to a recent note by Credit Suisse, growth in Brazil’s household consumption in the quarters ahead will likely be closer to the average for cycles of slower expansion. The slowdown in consumption will be less significant and more gradual than that in investments. The slower expansion of employment and credit in recent quarters will reduce household consumption growth that has started in 3Q11.

The bank projects that average growth in GDP and in household consumption will decline from 1.5% and 1.6% (2Q09 to 2Q11) to 0.7% and 0.8% (3Q11 to 4Q12), respectively.
Source: Credit Suisse
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