Brasília – The level of economic activity in Brazil grew 0.71% in January compared with the previous month and 4.58% over the same period of last year, according to figures disclosed this Wednesday (16th) by the Central Bank of Brazil.
The Index of Economic Activity (IBC-Br) reached 141.74 points, as against 140.74 points in December and 135.53 points in January 2010. As a result, the combined increase in production in the 12-month period ended January is 7.38%.
Established by the Central Bank to obtain an approximated forecast of the Gross Domestic Product (GDP) – the sum of the wealth and services produced in the country –, the IBC-Br index is one of the parameters considered by the Monetary Policy Committee (Copom) for setting the benchmark interest rate (Selic).
The IBC-Br incorporates and summarizes information regarding the different sectors of the economy, such as industry, services and agriculture, in an attempt to predict the behaviour of economic activity. These projections are similar to the figures of the Brazilian Institute of Geography and Statistics (IBGE), which are disclosed afterwards, but according to the Central Bank, the IBC-Br index is not a measurement or projection of the GDP.
*Translated by Gabriel Pomerancblum
