Brazil’s Economy Grows 0.86% in October; Lowest Result Since May

RIO DE JANEIRO, BRAZIL – Brazil’s economy grew 0.86 percent in October compared to September, marking the sixth consecutive month of growth, but the lowest result since May, indicating an economic slowdown, the Central Bank of Brazil said on Monday, December 14th.

The bank’s Economic Activity Index (IBC-Br), considered a preview of gross domestic product (GDP), fell 2.61 percent in October year on year.

In the first 10 months of the year, the IBC-Br accumulated a 4.92 percent drop, while in the 12 months ending in October, it dipped 3.93 percent.

The IBC-Br is still below February’s pre-pandemic levels, the bank noted.

October’s 0.86 percent growth shows the economy is cooling down compared to the last six months, according to the bank.

Brazil’s GDP grew 7.7 percent in the third quarter of the year compared to the second quarter, not enough to compensate for the economy contracting in the first two quarters due to the COVID-19 pandemic