Consumer credit demand in Brazil sank 10.5% in 2016 to the lowest level since 2010, according to credit research firm Boa Vista SCPC.
In the month of December alone, consumer loan search fell 11.6% from the prior month and 20.1% from year-ago levels.
"The year of 2016 ended a great cycle of economic variables deterioration, a fact that had an incisive effect on consumer's behavior," Boa Vista said in a statement. The firm noted that high interest rates, negative real incomes and high unemployment, among other factors, triggered greater caution and aversion to household consumption.
For 2017, Boa Vista expects credit demand to start a growth resumption, in line with the prospects of interest rates, inflation and gradual improvement in the labor market.