Rio de Janeiro – Brazil’s Economic Climate Index (ICE, in the Portuguese acronym) increased again in October, following a decline in July. According to the Getulio Vargas Foundation (FGV), the index, which is based on analyses conducted by Brazilian specialists, climbed from 3.8 points in July to 4.8 points in October this year.
The Expectations sub-index, which concerns the country’s economic situation in the coming six months, increased the most, from 4.2 to 5.3 points during the period. The Current Scenario sub-index was up from 3.3 to 4.2 points.
According to the survey, the Brazilian economy is in a “recovery” phase, seeing as the Expectations sub-index is higher than 5 points and the Current Scenario sub-index is lower than 5 points. According to FGV criteria, the other existing phases are: expansion (when the two sub-indexes are above 5 points), recession (when both are below 5) and worsening (when the Expectations sub-index is below 5 points and the Current Scenario sub-index is higher than 5 points).
Brazil’s score is higher than that of Latin America, which scored 4.4 points in October, but lower than six out of ten countries surveyed: Paraguay (6.4 points), Peru (6), Colombia (5.7), Bolivia (5.4), Chile (5.2) and Ecuador (5). The global ICE average (5.5) is higher than Brazil’s.
*Translated by Gabriel Pomerancblum
