Brasília – Economic activity in the country shrank 0.02% in May as against the prior month. That is what the Economic Activity Index of the Central Bank (IBC-Br), not seasonally adjusted, disclosed on Thursday (12).
According to revised monthly figures disclosed by the BC, this year there was also reduction in January (0.22%, as against December) and March (0.17% in comparison with February). In April and February there was respectively growth of 0.10% and 0.39%.
In the comparison between May this year and the same month last year, the index observed (not adjusted seasonally) there was reduction of 1.09%. This growth took place after a reduction of 0.02% in April, with regard to the same month in the previous year, but shows that economic activity was growing faster last year. In May 2011, in comparison with 2010, the growth reached 4.22%.
In the first five months of this year as against the same period in 2011, there was expansion of 0.85%, in the case of unadjusted indices, considered the most adequate by economists for this kind of comparison. In the 12 months ending in May, the IBC-Br, unadjusted, registered growth of 1.39%.
The IBC-Br is a way of evaluating and anticipating Brazil’s economic activity. The index incorporates information about the level of economic activity of the three sectors of the economy: industry, trade and services and agriculture.
The slower economy has resulted in revised estimates for growth of the Gross Domestic Product (GDP). The Central Bank of Brazil has reduced its forecasted growth for this year from 3.5% to 2.5%. That of financial institutions approached by the Central Bank each week dropped from 2.05% to 2.01%, this year. Yesterday the National Confederation of Industries (CNI) also reduced its forecasted growth of GDP, from 3% to 2.1%.
*Translated by Mark Ament
