Brazil: Economic activity contracts in May
July 14, 2016
In May, economic activity declined 0.5% over the previous month in seasonally-adjusted terms, according to the Central Bank’s monthly indicator for economic activity (IBC-Br, Indice de Atividade Economica do Banco Central). The result contrasted April’s marginal 0.1% expansion and was worse than market analysts’ expectations of zero growth.
On an annual basis, economic activity plummeted 4.9%, which was a minor improvement compared to April’s 5.0% fall. Meanwhile, annual average growth in May was in line with April’s minus 5.4%, which is a multi-year low.
Author: Christopher Mc Innes, Economist