The value of loans in Brazil went down 0.2 percent month-over-month to BRL 3,164.6 billion in October 2018, after increasing 0.4 percent in the prior month. Loans to companies decreased 1.6 percent to BRL 1,418.4 billion while loans to households increased 1.1 percent to BRL 1,746.2 billion. Year-on-year, bank loans rose 3.5 percent, following a 3.9 percent gain in the previous month, as lending went up 7.4 percent to households but fell 0.8 percent to companies. Loan Growth in Brazil averaged 1.03 percent from 2007 until 2018, reaching an all time high of 3.68 percent in September of 2008 and a record low of -1.01 percent in January of 2017.
Loan Growth in Brazil is expected to be 0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Loan Growth in Brazil to stand at 0.32 in 12 months time. In the long-term, the Brazil Loan Growth is projected to trend around 0.50 percent in 2020, according to our econometric models.