Brazil: Economic activity stagnates in September
November 14, 2013
In September, economic activity recorded flat growth 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 was below both the 0.1% increase observed in August and market expectations of a 0.2% increase.
On an annual basis, economic activity expanded 3.3% in September, which was above the 1.3% increase tallied in August. Meanwhile, annual average growth increased from 2.1% in August to 2.5% in September, marking the highest level in 20 months.
The Central Bank expects GDP to grow 2.5% in 2013, according to its Inflation Report from September. LatinFocus Consensus Forecast panelists expect the economy to expand 2.5% in 2013, which is up 0.1 percentage points from last month's estimate. For 2014, the panel sees GDP growth accelerating to 2.3%, which is unchanged from last month's forecast.
Author: Carl Kelly, Economist