After entering a technical recession in Q3, the Brazilian economy is continuing to struggle throughout Q4. The Central Bank’s economic activity index (IBC-Br) — considered a reliable predictor of official GDP figures — fell 0.4 percent between October and September, without seasonal adjustment.
It was the fourth straight month of contraction, albeit in line with market expectations.
Besides negative October data, the Central Bank revised results for July, August, and September downward — which further highlights how Brazil’s pandemic recovery has lost steam.
Earlier this month, results for retail, industry, and services showed a poor start to Q4 — raising more concerns for the government ahead of the 2022 election.