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Brazilian economy plunges 4 percent in 2020: Central Bank

. Feb 12, 2021
central bank economy Avenida Paulista, in São Paulo. Photo: Roberto Parizotti/FP

After posting better-than-expected growth in December (0.64 percent), the Brazilian economy ended 2020 with an overall drop of 4.05 percent, according to the Economic Activity Index (IBC-Br), published by the Central Bank.

The index is seen as a predictor of official GDP data, which will only be confirmed in March.

If Central Bank numbers are indeed correct, this will mean that Brazil has surpassed expectations, despite the heavy recession. Markets foresaw a contraction of 4.5 percent last year. Still, the result would be worse than the 3.5-percent skid seen in 2016, during what was then the worst recession in Brazil’s history.

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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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