Brazil’s Economic Uncertainty Index Rises in December Amid Fiscal Concerns
Brazil’s Economic Uncertainty Indicator (IIE-Br) climbed 5 points in December, reaching 115.4 points. This marks the highest level since March 2023, as reported by FGV Ibre.
The increase reflects growing doubts about Brazil’s fiscal policy and potential political shifts in the United States. Anna Carolina Gouveia, an economist at FGV Ibre, highlighted the main drivers behind this uptick.
Uncertainties surrounding public accounts topped the list of concerns. The external landscape, particularly potential changes in U.S. political directions, also contributed to the rise.
The IIE-Br consists of two main components: Media and Expectations. The Media component, based on the frequency of uncertainty-related news, rose 4.7 points to 113.2 points in December. This represents its highest level since May 2023.
The Expectations component also saw an increase, climbing 3.9 points to reach 117.7 points. This figure marks the highest point since December 2022. These rises in both components underscore the growing economic unease.
Gouveia predicts that the indicator will remain at an uncomfortable level in the coming months. She cites ongoing fiscal uncertainties and other macroeconomic challenges facing Brazil in 2025 as key factors.
This outlook suggests a potentially turbulent economic landscape ahead. The IIE-Br’s three-month moving average also showed an upward trend. It advanced 2.5 points, totaling 110.2 points.
This further reinforces the persistent nature of economic uncertainty in Brazil. These figures paint a picture of an economy grappling with both domestic and international pressures.
As Brazil navigates its fiscal challenges and global political shifts, the economic uncertainty index serves as a barometer of market sentiment and potential volatility.
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+0.66%
172,457.76
+0.66%
71,204.98
-0.84%
10,660.94
+0.34%
2,848,945
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2,452.46
-0.02%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 172,457.76 | +0.66% | +9.73% | 171,324.31 | 172,715 | 171,132 | — |
| USD/BRL | 5.67 | +0.45% | +7.09% | 5.64 | 5.67 | 5.63 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 45.30 | +1.34% | +39.43% | 44.70 | 45.44 | 44.62 | 23,431,200 |
| VALE3 | 63.50 | -0.70% | -3.30% | 63.95 | 64.24 | 63.12 | 11,175,700 |
| ITUB4 | 42.27 | +1.42% | +7.66% | 41.68 | 42.56 | 41.62 | 19,532,400 |
| BBDC4 | 14.52 | +1.40% | -25.46% | 14.32 | 14.54 | 14.27 | 32,353,600 |
| BBAS3 | 15.10 | -2.45% | -32.89% | 15.48 | 15.60 | 14.98 | 85,573,900 |
| B3SA3 | 14.89 | +0.88% | +2.90% | 14.76 | 14.94 | 14.53 | 34,792,900 |
| ABEV3 | 15.79 | +0.25% | +15.85% | 15.75 | 15.83 | 15.64 | 13,254,800 |
| WEGE3 | 51.31 | -0.66% | +14.48% | 51.65 | 52.05 | 50.93 | 7,741,000 |
| PRIO3 | 63.30 | +0.00% | +58.93% | 63.30 | 63.83 | 62.65 | 10,460,300 |
| SUZB3 | 54.77 | -2.27% | +14.92% | 56.04 | 55.98 | 54.66 | 3,845,300 |
| RENT3 | 30.07 | +1.66% | -28.47% | 29.58 | 30.35 | 29.58 | 7,599,300 |
| AZZA3 | 15.91 | -5.86% | -45.85% | 16.90 | 17.10 | 15.72 | 6,641,600 |
| CSNA3 | 3.72 | -12.06% | -56.79% | 4.23 | 4.14 | 3.71 | 54,060,600 |
| GGBR4 | 24.73 | -0.96% | +30.78% | 24.97 | 25.09 | 24.53 | 5,458,200 |
| ENEV3 | 26.81 | -0.70% | +38.98% | 27.00 | 27.09 | 26.64 | 5,990,500 |
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