Brazil’s economic activity rises, but still falls short of expectations

. Sep 14, 2020
Brazil’s economic activity rises, but still falls short of expectations

The Central Bank’s economic activity index (IBC-Br), a measurement often seen as predictive of Brazil’s official GDP, rose by 2.15 percent in July. It is the third-straight month of positive results, but the index fell short of the +3.4-percent expected by economists

IBC-Br is currently 4.89 percent below July 2019 levels — a drop smaller than the 5.25-percent drop economists expect for the annual GDP.

The Central Bank has also reviewed June’s performance to a 5.31-percent increase, from the +4.89 percent initially reported. 

Market expectations for Brazils’ economic activity

The Central Bank’s Focus Report, a weekly survey with top-rated investment firms, saw an improvement in expectations for the Brazilian economy. The median prediction for the annual GDP growth rate sits at -5.11 percent, up from last week’s -5.31 percent. Inflation projections, however, have grown to 1.94 percent, from 1.78 percent a week ago — following a recent spike on food prices.

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Natália Scalzaretto

Natália Scalzaretto has worked for companies such as Santander Brasil and Reuters, where she covered news ranging from commodities to technology. Before joining The Brazilian Report, she worked as an editor for Trading News, the information division from the TradersClub investor community.

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