Brazil: Economic activity picks back up in October
December 13, 2013
In October, economic activity expanded 0.8% 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 was above the flat reading observed in September and beat market expectations of a 0.5% increase.
On an annual basis, economic activity increased 2.7% in October, which was below the 3.3% expansion tallied in September. Meanwhile, annual average growth decreased from 2.5% in September to 2.4% in October.
The Central Bank expects GDP to grow 2.5% in 2013, according to its Inflation Report from September. LatinFocus Consensus Forecast panelists expect the economy to expand 2.4% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel sees GDP growth at 2.3%, which is unchanged from last month's forecast.
Author: Carl Kelly, Economist