The 15,000 people who make up the richest 0.01% saw their income grow by 96% in 5 years compared to 33% for the majority of the population
The income of the very rich has grown, in recent years, at a rate up to 3 times greater than the average recorded by 95% of Brazilians. The data is in technical note prepared by economist Sérgio Gobetti and published by the Fiscal Policy Observatory of FGV Ibre (Brazilian Institute of Economics of the Getulio Vargas Foundation). Here's the complete (PDF – 273 kB).
The economist used data from the Federal Revenue and IBGE (Brazilian Institute of Geography and Statistics) to compare the average income in 2017 and 2022 of 4 social strata: the thousandth (0.1%) richest, the 1% richest, the 5% richest and the remaining 95% of the adult population (aged 18 or over).
According to the technical note, “What can be seen is that, in addition to the richest having, on average, greater income growth than the base of the pyramid, performance is greater the higher the level of wealth”.
Here are the results:
Table showing the evolution of the income of the richest in Brazil
The majority of the adult population had an average income growth of 33% over the 5-year period. Among the 15,000 people who make up the richest 0.01%, growth was 96%.
The income of the richest 1% in Brazil increased from 20.4% to 23.7% from 2017 to 2022. However, more than ⅘ of this additional concentration of income was absorbed by the richest one thousandth. According to the data, 153 thousand adults saw their average monthly income go from R$236 thousand in 2017 to R$441 thousand in 2022.
To belong to the richest 0.1%, according to the technical note, you must have an income of at least R$140 thousand per month. To belong to the richest 1%, the necessary income is more than R$30,000. To belong to the richest 5%, you need R$10,000 per month.
“More important, however, than helping to define who is or is not rich (and in relation to whom), the results of the analysis based on IRPF data serve as a warning about the process of income reconcentration in Brazil and about the vectors that contribute most to this – the exempt or under-taxed income that stands out as the main source of remuneration among the super rich”, says the text.
Here is the variation in average income from 2017 to 2022:
Table with the variation in average income from 2017 to 2022
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