Brazil faces high debt levels with 84 million people in default

Brazil is facing a significant debt crisis, with Serasa Experian reporting that approximately 84 million people—roughly 51% of active CPFs—are currently in default. Despite a low unemployment rate of around 5%, many citizens are struggling with high interest rates on personal loans and overdue bills. This trend is attributed in part to the aftermath of the pandemic, where emergency aid and the rise of banking applications increased indebtedness, particularly among low-income populations.

The corporate sector is experiencing similar challenges. Over 9 million companies in Brazil are in default, with total overdue debts reaching approximately R$ 232 billion. This delinquency most heavily impacts micro and small enterprises. Data from June indicated that 8.6 million CNPJs were listed as being in default, accounting for roughly 60 million debts totaling R$ 201 billion.