Brazil’s top 0.01% of earners, merely 15,000 individuals out of 212 million, saw their income soar by 96% in recent years.
This rate starkly contrasts with the 33% growth seen by the majority of Brazilians.
These findings emerge from a study by economist Sérgio Gobetti, published by the Fiscal Policy Observatory of FGV Ibre.
Gobetti’s analysis, based on data from the Federal Revenue and the Brazilian stats agency IBGE, compares income changes across various social groups.
He focused on the wealthiest 0.1%, the top 1%, the richest 5%, and the remaining 95% of the adult population from 2017 to 2022.
The study reveals that income growth increases with wealth. The richest groups have seen their incomes rise more than those at the bottom.
For the adult population majority, income grew by 33% in five years. Meanwhile, the top 0.01% saw their income nearly double.
This trend is evident in the top 1%’s income share, which grew from 20.4% to 23.7% between 2017 and 2022.
Interestingly, the wealthiest thousandth absorbed over four-fifths of this additional income.
The data shows a dramatic increase for 153,000 adults, whose average monthly income jumped from R$ 236,000 ($48,660) to R$ 441,000 ($90,876).
To be part of the top 0.1%, one needs a monthly income of at least R$ 140,000 ($28,870). For the top 1%, it exceeds R$ 30,000 ($6,186).
For the top 5%, over R$ 10,000 ($2,062) is required.
The study underscores the growing income reconcentration in Brazil. It points out the key role of tax-exempt or under-taxed earnings, which greatly benefit the ultra-wealthy.
This trend has significant implications for economic inequality and social dynamics in Brazil.