Number of Brazilian Micro and Small Companies in Default Breaks Historical Record

RIO DE JANEIRO, BRAZIL – Default by micro and small businesses broke a record in May, reaching 5.434 million, according to data from Serasa Experian. This is the largest number in the historical series, which began in March 2016.

Compared to May of last year (a month marked by the truckers’ strike), there was a rise of 6.9 percent in the number of companies in the segment with debts in arrears. In relation to April (previous record, with 5.405 million defaulters), the increase was 0.5 percent.

The services sector registered the most significant growth in the year-on-year comparison (10,5 percent), followed by industry (2,4 percent), and commerce (2,2 percent).

By state, Rio de Janeiro saw the highest increase (11.8 percent) in the number of micro and small defaulters, year-on-year. Only three states registered a drop: Alagoas (-5.4 percent), Rio Grande do Norte (-4.0 percent), and Piauí (-3.2 percent).

In May, the total number of companies in default of all sizes (micro, small, medium and large) was 5.727 million, an increase of 0.7 percent in relation to the result recorded in April (5.689 million). In the annual comparison, the growth was 4.5 percent. Micro and small companies account for 95 percent of the total amount.