RIO DE JANEIRO, BRAZIL – According to data released on May 2 by the Brazilian Central Bank, Brazil’s economic activity resumed growth in February but was slower than expected.
According to a Reuters poll, the IBC-Br economic activity index, a leading indicator of Gross Domestic Product, rose 0.34% in February from the previous month, below the 0.5% rise expected by economists.
On the other hand, the Central Bank revised January’s decline to 0.73%, better than the 0.99% contraction previously reported.
In February, retail sales and industrial production exceeded forecasts, while the performance of the services sector was below expectations.
Persistent inflation and double-digit interest rates are expected to weigh on Latin America’s largest economy this year. The government, however, has argued that a stronger labor market and higher investments will support more robust growth.
The IBC-Br index advanced 0.66% on a seasonally adjusted basis from February 2021, while in the 12 months to February, it rose 4.82%, the Brazilian Central Bank said.
The Economy Ministry lowered its GDP growth forecast to 1.5% this year from 2.1% previously, but the figure is still well above most analysts’ projections.
With information from Reuters