Brazil: Economic growth remains robust in April
June 15, 2011
In April, economic activity expanded a seasonally adjusted 0.4% 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 represented a slight moderation compared to the 0.5% increase registered in March. That said, analysts expected a much weaker result due to the sharp industrial production contraction registered in April. A quarter-on-quarter analysis shows that economic growths stabilised over April, as the three-month moving average expanded 1.3% in seasonally adjusted terms in the three months to April, unchanged from the January-March pace. The IBC-BR is highly correlated to the GDP series and thus represents a good proxy for economic growth. On an annual basis, economic activity expanded 2.5% in April, up from the 1.5% increase observed in March. Nonetheless, the trend continued to point downwards, with annual average growth plummeting from 6.5% in March to 5.7% in April.