Brazil savings account inflows double in 2018

Brazil recorded net inflows of savings deposits in 2018 driven by the improving economy and low interest rates.

Inflows reached 38.3bn reais (US$10.25bn) last year compared with 17.1bn reais in 2017, according to the central bank.

The figures compare with net outflows of 53.6bn reais and 40.7bn reais in 2015 and 2016, respectively.

With the economic recovery, Brazilians have more cash for savings. After contracting 3.5% in 2015 and also in 2016, the economy expanded 1% in 2017 and is projected to have grown 1.3% last year.

Also, with the benchmark Selic rate at an all-time low of 6.5% most Brazilians opted for simple savings account investments over other fixed-income alternatives.

The net inflows are positive for the real estate sector, as savings accounts are the largest source of mortgage funding in Brazil.