Brazil records historic surge in corporate defaults with over 9 million firms in arrears

A new Serasa Experian indicator shows that corporate default in Brazil has reached a historic peak, with more than 9 million CNPJs flagged as delinquent in April and total overdue debt climbing to 63.7 million accounts worth R$220.9 billion. Micro and small enterprises dominate the list, accounting for about 8.5 million of the defaults and carrying R$191.8 billion of the debt. On average, each defaulting firm has 7.1 overdue accounts and a liability of R$24,665.91. The services sector leads the delinquency ranking (55.6%), followed by commerce and industry. Geographically, the Southeast concentrates the most defaults, with São Paulo alone reporting over 3 million arrears, while Maranhão recorded 109,605 delinquent companies, placing the state fourth in the Northeast and 17th nationwide. Chief economist Camila Abdelmalack attributes the trend to persistently high interest rates and a restrictive credit environment that strain cash flow, especially for firms reliant on short‑term financing. The outlook suggests the elevated default level could persist through 2026 unless structural credit conditions improve.