Brazil: Economic activity rebounds in March
May 16, 2013
In March, economic activity rose 0.7% 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 0.4% decline observed in February but slightly undershot market expectations of a 0.8% increase.
On an annual basis, economic activity expanded 1.2% in March, which was above the 0.4% increase tallied in February. The trend remains stable, however, with annual average growth remaining unchanged at 0.9% in March. The IBC-Br is highly correlated to the GDP series and thus represents a good proxy for economic growth.
The Central Bank expects GDP to grow 3.1% in 2013, according to its Inflation Report from March. LatinFocus Consensus Forecast panellists expect the economy to also expand 3.1% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel sees GDP growth accelerating to 3.6%.