Economic activity down 0.13% in Brazil

The Brazilian economy lost steam in Q2 from Q1, the Central Bank reported.

Gabriel Kawamura Pomerancblum

Brasília – Brazilian economic activity cooled off by 0.13% in Q2 from Q1 this year, according to the Brazilian Central Bank’s season-adjusted Economic Activity Index (IBC-Br). The numbers were made public this Monday (12).

Activity is down for the second straight quarter. Revised data show that the IBC-Br slid 0.52% in Q1 from Q4 2018.

Brazil’s economy picked up by 0.62% (non-adjusted) year-on-year in H1, and by 1.08% in the 12 months through June.

Even though Gross Domestic Product (GDP) is the official economic indicator, the Central Bank relies on the IBC-Br to gauge economic activity in order to make decisions regarding the benchmark interest rate, aka Selic.

Translated by Gabriel Pomerancblum

Marcello Casal Jr./Agência Brasil

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