Favelas responsible for circulation of $24 billion every year

Favela residents are responsible for nearly $24 billion in economic activity every year, according to a survey by Data Favela, an institute for research and business strategies specialized in the Brazilian shanty towns, in partnership with Instituto Data Popular (which focuses on consumers from classes C, D, and E), and the Unified Center for Favelas (Cufa).

The survey shows that the average income, driven up chiefly by the growth in the minimum wage and the number of formal jobs, has enabled the 12,3 million slum dwellers to strengthen their participation in the consumption market.

The study's preliminary data, released Monday (Mar 2), indicate that 75% of homes in the favelas have a washing machine in 2015, compared to  2013's 69%. Plasma, LED or LCD TVs, in turn, can be found in 67% of households, against 2013's 46%. The study further reveals that the percentage of residents who have a car surged from 20% in 2013 to 24%.

On the other hand, the amount of indebted people in those areas has also risen: 27% in 2013, which rose to 35% in 2015, mostly among those aged 35 to 49.

The research was conducted in February this year, and was based on the information collected after 2 thousand residents were interviewed in 63 favelas in ten metropolitan regions throughout the country: São Paulo, Rio de Janeiro, Belo Horizonte, Belém, Fortaleza, Recife, Salvador, Curitiba, Porto Alegre, and Brasília. The full survey will be released on Tuesday (3), during the 2nd New Brazilian Favela Forum, in São Paulo.

Translated by Fabrício Ferreira