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.Support this coverage →