While official GDP figures for 2021 will only be disclosed on March 4, Brazil’s Central Bank’s latest Economic Activity Index (IBC-Br) suggests the country’s economy grew by 4.5 percent last year.
IBC-Br results are in line with market expectations gathered by Central Bank surveys, though the Economy Ministry is more bullish, expecting 5.1 percent growth.
If confirmed, the result would offset the 4-percent GDP skid in 2020, but not all is good news. The Brazilian economy has been marred by rampant inflation, which has remained above the 10-percent mark for the first time since 2016. In fact, the country is currently in a technical recession, after the economy shrank 0.4 and 0.1 percent in Q2 and Q3 2021, respectively.