Brazil: Economic activity registers timid expansion in February
April 15, 2014
In February, economic activity expanded 0.2% 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 marked a deceleration over the 2.3% expansion tallied in January, which had represented the highest growth rate since June 2008. The result was on par with market expectations. The slowdown seen in economic activity reflected that the Carnival holiday took place in March this year, whereas last year it took place in February.”
On an annual basis, economic activity increased 4.0% in February, which was above the 0.9% rise tallied in January. Meanwhile, annual average growth increased from 2.3% in January to 2.6% in February.
The Central Bank's Inflation Report from March indicates that it expects GDP to grow 2.3% in 2014. LatinFocus Consensus Forecast panelists expect the economy to expand 1.8% in 2014, which is unchanged from last month's estimate. For 2015, the panel sees GDP growth at 2.1%.