Brazil: Economic activity increases in February
Economic activity increased 0.4% in seasonally-adjusted month-on-month terms in February, up from January’s downwardly revised flat reading (previously reported: +0.2% month-on-month). The result surpassed market expectations of 0.2% growth.
On an annual basis, growth in economic activity rose to 0.6% in February from January’s 0.1% rise. Meanwhile, annual average growth in economic activity edged down to 0.7% from 0.8%.
Looking ahead, the economy is expected to take a significant hit from the coronavirus pandemic and containment measures put in place in March to combat the outbreak in Brazil. Nevertheless, fiscal and monetary stimulus should cushion the blow somewhat.