Brazil: Economic activity records largest contraction in 9 months in February

In February, economic activity decreased 0.7% in seasonally-adjusted month-on-month terms, according to the Central Bank’s monthly indicator for economic activity. The result followed January’s revised 0.3% decrease (previously reported: -0.4% month-on-month) and marked the largest drop since May last year.

On an annual basis, economic activity expanded 2.5% in February, notably above January’s 0.8% increase. Annual average growth in economic activity rose from January’s 1.0% to 1.2% in February.

Brazil GDP Forecast

The analysts surveyed for this month’s LatinFocus Consensus Forecast expect the economy to grow 2.3% in 2019, which is unchanged from last month’s estimate. For 2020, the panel of analysts sees GDP rising 2.5%.