Brazil: Economic activity picks up in the fourth quarter
February 2, 2011
In November, economic activity expanded a seasonally adjusted 0.4% over the previous month, according to the Central Bank's monthly indicator for economic activity (IBC-Br, indice de Atividade Economica do Banco Central), which was slightly below the 0.5% increase registered in October. The result suggests that the economy gained momentum during the final quarter of the year, as the 3-month moving average rose 1.1% in seasonally adjusted terms compared to the August-October period (GDP Q3: +0.5% qoq sa). The IBC-Br is highly correlated to the GDP series. On an annual basis, economic activity expanded 6.5% in November, following growth of 4.2% in October. Moreover, the trend continues to point upwards, with annual average growth reaching 8.3% in November (October: +8.2%). The Central Bank expects the economy to have expanded 7.3% in 2010.