Bankruptcy filings in Brazil declined for the second consecutive year in 2018 as the country's economy continued its gradual recovery from a multiyear recession.
The number of bankruptcy filings in Latin America's largest economy fell 16.0% compared to 2017, according to data from credit research firm Boa Vista SCPC.
The result "is linked to an improvement in economic conditions since 2017, which allowed companies to present stronger solvency indicators," Boa Vista said. However, it added that continued improvement in the bankruptcy indicator "will depend on a faster recovery of economic activity."
According to Boa Vista, 41.7% of the total bankruptcy filings in 2018 were from companies in the services sector, followed by 31.9% from the industrial sector. Small businesses accounted for 91.4% of the bankruptcy filings in Brazil.
Meanwhile, Serasa Experian said Brazil saw 1,459 bankruptcy filings in 2018, down 14.6% from 1,708 in the previous year and down 21.2% from 2016.
"The slow pace of [economic] recovery, which was well below expectations, impacted business performance, affecting mainly micro and small enterprises," Serasa said.