Brazil: Economic activity declines in February
April 16, 2012
In February, economic activity fell 0.2% 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 reading mirrored the increase observed in January (previously reported: -0.1% month-on-month) and came in line with market expectations. On an annual basis, economic activity expanded 0.9%, which was below the 1.4% increase recorded in January. Moreover, the trend continues to point downwards, with annual average growth falling from 2.4% in January to 1.9% in February. The IBC-Br is highly correlated to the GDP series and thus represents a good proxy for economic growth.