The sharp drop in currencies in Brazil and Russia appears set to claim an unlikely victim: appliance sales.
Market researcher Euromonitor expects this year's consumer appliance sales globally will grow only around 2 percent in retail volume terms, largely driven by sharp slumps in Brazil and Russia. That's down from 3.8 percent growth in 2014 and would mark the lowest level since 2009, during the Global Financial Crisis.
Major appliance sales in Russia and Brazil are expected to drop 28 percent and 6 percent respectively this year, Euromonitor said.
Those two countries have seen their currencies drop sharply over the past year, hurt by declining prices for their commodity exports and fund outflows from most emerging markets amid expectations the U.S. Federal Reserve will soon hike interest rates for the first time in nine years.
Russia has also been hit by international sanctions over its annexation of Crimea in March 2014 and its role in the pro-Russian uprising in Ukraine. The dollar has gained 18 percent against the ruble and soared 43.4 percent against the real so far this year.
"It's really affecting the sales," Jamie Ko, head of consumer appliances at Euromonitor, said in a phone interview Thursday. "Imported goods prices go up, (but) it doesn't mean gross domestic product and income go up. The willingness to purchase for customers won't remain the same."