Brazil: Economic activity rebounds in June
August 15, 2013
In June, economic activity rose 1.1% 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 1.5% contraction observed in May, which had marked the largest drop since December 2008. June's increase fell just short of market expectations of a 1.3% rise.
On an annual basis, economic activity expanded 2.4% in June, which was slightly above the 2.3% increase tallied in May. The upward trend continued, with annual average growth rising from 1.7% in May to 1.9% in June - the highest level in 14 months.
The Central Bank expects GDP to grow 2.7% in 2013, according to its Inflation Report from June. LatinFocus Consensus Forecast panellists expect the economy to expand 2.3% in 2013, which is down 0.2 percentage points from last month's estimate. For 2014, the panel sees GDP growth accelerating to 2.7%.
Author: Carl Kelly, Economist