Brazil: Economic activity falls in November
January 17, 2014
In November 2013, economic activity contracted 0.3% 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 figure contrasted the 0.7% expansion observed in October and was below market expectations of a 0.1% decrease.
On an annual basis, economic activity increased 1.3% in November, which was below the 2.7% expansion tallied in October. Meanwhile, annual average growth held steady at October's 2.4%.
The Central Bank expects GDP to grow 2.3% in 2014, according to its Inflation Report from December. LatinFocus Consensus Forecast panelists expect the economy to expand 2.1% in 2014, which is down 0.2 percentage points from last month's estimate. For 2015, the panel sees GDP growth at 2.3%.
Author: Carl Kelly, Economist