Brazil: Economic activity accelerates in January
March 16, 2011
In January, 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 de Atividade Economica do Banco Central). The reading represents an acceleration compared to the 0.1% increase registered in December and marks the fastest pace since April 2010. The result shows that the economy started the year positively, accelerating from average growth of 0.4% tallied in the final months of 2010. As the IBC-Br is highly correlated to the GDP series, the indicator represents a good proxy for the quarterly national accounts data. On an annual basis, economic activity expanded 5.1% in January, up from a 3.7% increase in December. However, the trend starts to point downwards, as the low comparison base of 2009 fades. Accordingly, annual average growth moderated from 7.8% in December to 7.6% in January.