Brazil: Economic activity rebounds in August but by less than expected
October 15, 2013
In August, economic activity rose 0.1% 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 0.3% contraction observed in July but came in below market expectations of a 0.2% increase.
On an annual basis, economic activity expanded 1.3% in August, which was below the 3.4% increase tallied in July. Meanwhile, annual average growth was unchanged at July's 2.1%, the highest level in 17 months.
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 unchanged from last month's estimate. For 2014, the panel sees GDP growth accelerating to 2.3%, which is down 0.2 percentage points from last month's forecast.
Author: Carl Kelly, Economist