Brazilian Middle Class Surpasses 50% For First Time Since 2015
(MENAFN- The Rio Times) A recent study by Tendências Consultoria unveils a substantial transformation in Brazil's socioeconomic structure during Lula's administration. For the first time since 2015, the middle class has become the dominant force in the country's households.
The study estimates that 50.1% of Brazilian households earned over R$3,400 ($550) monthly in 2024. This marks a crucial milestone as classes A, B, and C combined now represent the majority of the sample content.
This surge in middle-class dominance stems from the Lula administration's income transfer policies. The Bolsa Família program and above-inflation minimum wage increases have played pivotal roles in this transformation.
The welfare state in Brazil has grown substantially. In 2024, the main social benefits from federal and state transfers amounted to at least R$397 billion ($650 million) annually.
As a result, the representation of lower-income classes D and E has decreased from 50.4% to 49.9%. This shift indicates a significant improvement in the overall economic well-being of Brazilian households.
Class C, with monthly incomes between R$3,400 and R$8,100, now shows the highest prevalence of households since 2020. Class B (R$8,100 to R$25,200) has reached its highest percentage since 2014.
Notably, Class A (above R$25,200) has hit its highest level in the series, surpassing 4%. This growth across all upper income brackets suggests a broad-based economic improvement.
The study also highlights regional disparities in income distribution. The Northeast region continues to have the highest percentage of households in lower-income classes.
Brazilian Middle Class Surpasses 50% for First Time Since 2015
These changes reflect the complex interplay of economic policies, employment trends, and social programs. The increased minimum wage has boosted workers' bargaining power and raised the value of social benefits.
Brazil's unemployment rate has reached its lowest level in the historical series, further contributing to the rise in household income. This positive trend in employment has been a key factor in the expansion of the middle class.
However, the study cautions that middle-class families in developing economies remain vulnerable to setbacks. Economic recessions or family-related issues like illness or unemployment can potentially push these households back into poverty.
As Brazil navigates this socioeconomic shift, the challenge lies in sustaining and building upon these gains. The growth of the middle class represents a significant opportunity for economic development and social stability in the country.
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