Brazil Economic Activity August 2016

Brazil

Brazil: Economic activity deteriorates in August

October 31, 2016

In August, economic activity contracted 0.9% from 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 followed July’s revised 0.1% fall (previously reported: -0.1% month-on-month) and marked the worst reading since May 2015. The result was below market analysts’ expectations of a 0.7% drop.

On an annual basis, economic activity fell 2.7% in August, which was a notable improvement compared to July’s 5.2% fall. Meanwhile, the trend improved and the annual average variation in economic activity came in at minus 5.5%, up from July’s multi-year low of minus 5.7%.

The analysts surveyed for this month’s LatinFocus Consensus Forecast expect the economy to contract 3.2% in 2016, which is unchanged from last month’s estimate. For 2017, the panel of analysts sees GDP rising 1.0%, also unchanged from last month’s forecast.


Author: Angela Bouzanis, Senior Economist

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Brazil Economic Activity August 2016

Note: Month-on-month changes of seasonally adjusted IBC-Br (Indice de Atividade Economica do Banco Central) and annual average growth rate in %.
Source: Central Bank of Brazil.


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