Inequality is set to rise in coming years in Brazil

Subject

Drivers of income inequality.

Significance

Brazil is one of the most unequal societies in the world, with the wealthiest 0.1% of the population holding a larger share of income than the poorest 50.0%, While extreme poverty was significantly reduced earlier this century, structural inequality has persisted -- and is once again on the rise.

Impacts

• Worsening inequality may boost high crime rates, in turn increasing voter support for far-right candidates.
• The need to cut spending may increase unemployment and reverse successes in reducing poverty.
• Limits on public investment will militate against higher private investment and competitivity gains.