Brazil: Economic activity slows markedly in third quarter
November 17, 2010
In September, economic activity expanded a seasonally adjusted 0.7% over the previous month, according to the Central Bank's monthly indicator for economic activity (IBC-Br, indice do Banco Central) which was above the flat reading registered in August. Based on the monthly figures, the Brazilian economy expanded a seasonally adjusted 0.3% in the third quarter. The result suggests that GDP growth has moderated markedly in the third quarter compared to the 1.2% expansion recorded in the second quarter, as the IBC-Br is highly correlated to the GDP series. On an annual basis, economic activity expanded 6.4% in September. Despite the moderation compared to August's 6.7% year-on-year expansion, annual average growth improved from 7.4% to 8.0% in September. The Central Bank expects the economy to expand 7.3% this year.