The Brazilian economy shrunk 10.94 percent in the Q2 2020, feeling the full effects of the coronavirus pandemic, according to the Economic Activity Index (IBC-Br) published by the Central Bank this Friday.
But the data released by the monetary authority also shows signs of economic recovery. In June, the economy registered 4.89-percent growth when compared to May. The previous month had already seen positive figures, after sharp falls in March and April.
The near-11-percent fall for the second quarter comes after a 1.5-percent contraction in Q1. If official GDP results confirm the fall for Q2, Brazil will enter into a technical recession.
The IBC-BR index, published monthly by the Central Bank, is seen as a preview of GDP figures, which will be published on September 1.
Currently, the government projects a 4.7-percent fall in Brazilian GDP for 2020. The financial market, meanwhile, predicts a fall of 5.62 percent, according to the most recent Central Bank Focus Report, a weekly survey of major financial institutions.Support this coverage →