RIO DE JANEIRO, BRAZIL – The Economic Activity Index (IBC-Br) posted a 0.33% increase in December 2021, according to data released yesterday, February 11, by the Brazilian Central Bank.
The authority reported that, compared to December 2020, the index rose by 1.30%, considering seasonally adjusted data. The rate reached 139.73 points. In the year to date, the IBC-Br stood at 4.5%.
Considered a preview of the Gross Domestic Product (GDP), the index is a means of assessing the development of Brazilian economic activity and helps the Central Bank to make decisions on the benchmark interest rate, the SELIC, currently at 10.75% per year.
The IBC-Br includes information about the three economic sectors’ activity level: industry, commerce and services, and agribusiness, in addition to the tax volume. According to the Central Bank, the IBC-Br closed the fourth quarter of the year with a positive variation of 0.01% compared to the period between July and September, also considering the seasonally adjusted data.
The 4.5% result for the year falls short of the government’s expectations, which projected GDP growth of 5.1% in 2021. However, the result is in line with the the Institute for Applied Economic Research (IPEA) revised GDP data.