Brasília – Economic activity remained on a downward curve in Brazil from June to August of this year, primarily as a consequence of weak results from industry, retail and services, with a relevant impact on the labor market. So says the Regional Bulletin, a quarterly publication issued this Thursday (5th) by The Brazilian Central Bank, and featuring a breakdown of economic indicators per region of the country.
The Central Bank believes the prospects of a rebound hinge on a reversal of deteriorating consumer and entrepreneur confidence in quarters to come, which tends to be the case considering the government’s economic adjustment measures. “Additionally, the shift in exchange rate levels should continue to benefit regions whose economies are reliant on exports to a greater extent, namely the Midwest and South, with positive effects on their respective labor markets,” the Central Bank added.
The Index of Regional Economic Activity for North Brazil dropped 1.5% in the quarter ended August from the preceding three-month period, as per seasonally adjusted data. The index was down 0.9% in the Brazilian Northeast and 0.6% in the Midwest. In the Southeast, a slowdown in industry production and retail sales led to a 0.8% drop in the index. In the South, it was down 2.8%.
*Translated by Gabriel Pomerancblum
