Brazil’s economic activity index up 1.14 percent in June

Bar reopening in Rio de Janeiro: “We’re back, but taking all precautions.” Photo: Tânia Rêgo/ABr

The Central Bank’s economic activity index (IBC-Br) – considered to be a reliable predictor of official GDP data – was up 1.14 percent in June, amounting to a 7.01-percent year-to-date increase.

According to IBC-Br data, the Brazilian economy expanded 0.12 percent in Q2 2021 relative to the previous quarter, and 1.63 percent against Q2 2020. 

The services sector was the main tractor behind the positive numbers, having shown positive signs since local governments began lifting restrictions on non-essential businesses. It has already reached its highest level of activity since 2016. Retail was also a contributing factor, but the sector has lost steam in recent months. Industries, on the other hand, have been marred by a shortage of raw materials.