Brazil: Economic activity rebounds to multi-year high
March 14, 2014
In January, economic activity expanded 1.3% 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 1.4% drop observed in December and marked the highest growth rate since June 2008. The result exceeded market expectations of a 0.9% increase. On an annual basis, economic activity increased 0.9% in January, which was slightly above the 0.7% rise tallied in December. Meanwhile, annual average growth inched down from 2.5% in December to 2.3% in January. The Central Bank's Inflation Report from December indicates that it expects GDP to grow 2.3% in 2014. LatinFocus Consensus Forecast panelists expect the economy to expand 1.9% in 2014, which is down 0.2 percentage points from last month's estimate. For 2015, the panel sees GDP growth at 2.1%.
Author: Carl Kelly, Economist