Serasa Experian reports a significant increase in Brazilian companies seeking judicial recovery in November 2023.
A total of 175 firms, marking a substantial 196.6% rise from the previous year, opted for restructuring. This reflects an 8.0% increase from October, indicating a growing trend.
Economist Luiz Rabi from Serasa Experian notes that the recovery sector is still lagging despite improving economic conditions like lower inflation and interest rates.
The majority of these recovery cases come from small businesses. In November, 137 micro and small enterprises filed for recovery, compared to 113 in the same month in 2022.
Large companies accounted for only 16 cases, while medium-sized enterprises doubled that number by 33.
Interestingly, while recovery requests rose, bankruptcy filings decreased significantly. They dropped by 36.1% from October and 58.9% from November of the previous year.
This situation indicates a proactive approach by companies in financial distress.
It suggests a move towards restructuring rather than bankruptcy, likely influenced by better economic conditions.
This trend provides insights into the broader economic landscape, reflecting the resilience of small and medium enterprises.
Regionally and internationally, Brazil’s experience stands out. The country’s handling of business distress could serve as a model for others.
It showcases the importance of timely restructuring for business survival.
Brazil’s economic strategies appear effective, contrasting with trends in other economies. The situation underscores the complexities of global economic recovery post-pandemic.
It highlights the need for adaptable policies supporting businesses in challenging times.
Brazil’s approach offers economic resilience and recovery lessons, contributing to global economic understanding.