Brazil: Economic activity rebounds in January
Economic activity rebounded 0.2% in seasonally-adjusted month-on-month terms in January, contrasting December’s downwardly revised 0.4% decline (previously reported: -0.3% month-on-month). The result, however, undershot market expectations of 0.4% growth.
On an annual basis, economic activity hit a five-month low of 0.7% in January, down from the 1.3% expansion logged in December, while annual average growth in economic activity was stable at 0.9%.
Looking ahead, the economy is expected to take a significant hit from the global economic fallout that the coronavirus pandemic has triggered. Given Brazil’s reliance on exports, the economic outlook has deteriorated notably. Nevertheless, fiscal and monetary stimulus should help cushion the blow.