Rio de Janeiro – The economic climate in Latin America has worsened by 4.8% in October, from 84 to 80 points as per the Ifo-FGV Economic Climate indicator, despite an improvement from 55 to 57 points in Brazil. The index is released on a quarterly basis by Fundação Getulio Vargas in partnership with the German institute Ifo.
The current scenario indicator dropped from 72 to 64 points, whereas the expectations indicator remained at 96 points. The index for Latin America, however, declined by a much lower rate than the worldwide Economic Climate Index (Ice, in the Portuguese acronym), which dropped by 14% in October driven by deterioration across the world’s leading economies. The index was down 13% for the European Union and China and down 8.3% for the United States. According to FGV, the result indicates that the global economic scenario is poised to worsen in the coming six months.
In Brazil, the current scenario indicator dropped from 42 to 30 points and the expectations index soared from 68 to 84 points. Poll respondents pointed out that the main issues with Brazil’s economy include lack of confidence in government policy, lack of international competitiveness, government deficit and dearth of skilled labour.
*Translated by Gabriel Pomerancblum
