Brasília – The economic activity of Brazil shows growth of 0.22% in April, in comparison with the previous month. That is what is shown in the Economic Activity Index of the Central Bank (IBC-Br), adjusted for the period, disclosed on Friday (15).
The IBC-Br figures in comparison with the previous month have grown one month and shrunk the next since the start of this year. In January, as against December, there was contraction of 0.38%. In February, there was growth of 0.56% and in March, contraction (0.61%), according to the figures disclosed by the BC.
As against April last year, there was a reduction of 0.02% (unadjusted). This is the first drop in this comparison since September 2009, when the index dropped 1.79% over the same period last year. At the time, the international financial crisis erupted, with the bankruptcy of the Lehman Brothers bank.
In the first quarter of this year, as against the same period last year, the growth was 0.78%, in the case of the unadjusted index, considered the most adequate for this kind of comparison. In the 12-month period ending in April, the IBC-Br, unadjusted, had growth of 1.65%.
IBC-Br is a way to evaluate and anticipate the evolution of economic activity in Brazil. The index incorporates information about the level of activity of three sectors of the economy: industry, trade and services and agriculture.
The following of the index is considered important by the Central Bank for there to be greater comprehension of the economic activity and contribute to the decisions of the Monetary Policy Committee (Copom), responsible for defining the benchmark interest rate, the Selic. The Copom has reduced the benchmark interest rate as a way to stimulate the Brazilian economic activity, to face the effects of the international economic crisis.
Currently, the Selic is at 8.5% a year, the lowest since the current monetary policy was adopted, in early 1999.
*Translated by Mark Ament
