PMEs’ Growth Slows Amid High Interest Rates

The Brazilian economy is experiencing a slowdown in the growth of small and medium-sized enterprises (SMEs), as indicated by the Omie Index of SME Economic Performance. The index recorded a marginal increase of 1% in August, with an overall expansion rate of 2.9% for the first half of the year. Although the growth is still below levels observed over the past two years, the deceleration is notable and affects various sectors. In a global macroeconomic context marked by economic uncertainties and tight monetary policies in many countries, Brazil faces specific challenges that impact SMEs directly. High interest rates and household indebtedness have been crucial factors in slowing down growth, making it difficult for these companies to expand their real revenue since the second quarter of this year.