Brazil: Economic activity declines at quickest pace in 10 months in December
February 14, 2020
Economic activity fell 0.3% in seasonally-adjusted month-on-month terms in December, following November’s revised 0.1% decrease (previously reported: +0.2% month-on-month) and missing expectations of a softer 0.2% drop.
On an annual basis, economic activity rose 1.3% in December up from a downwardly revised 0.8% in November (previously reported: +1.1% year-on-year), while annual average growth in economic activity was stable at 0.9%.
Looking ahead, economic output is expected to gain some impetus on the back of a looser monetary stance, which should in part fuel fixed investment. Moreover, a tighter labor market and government measures aimed at increasing households’ disposable income should support consumer spending.
Author: Lindsey Ice, Economist