Brasília – The rate of growth of the demand for products and services is slowing down in Brazil, as is the expansion of production. The assessment was made by the Brazilian Central Bank, which issued the Regional Bulletin, a quarterly publication detailing economic conditions in different regions of the country, this Thursday (19th).
To the Central Bank, the slowing down of the economy is mostly due to the process of increase in the benchmark interest rate (Selic), and of macroprudential measures for curbing credit, adopted in late 2010. At present, the Selic is at 12% a year.
In terms of regions, the Central Bank evaluates that the North region is an exception to the country’s economic performance. The region displayed “an expressive dynamism in the first quarter of the year, and an increase in the rate of growth of the industry, driven by robust domestic demand and rising exports.”
The Index of Regional Economic Activity for the North region (IBCR-N), calculated by the Central Bank, increased by 4.2% in the three-month period ended February, compared with the period ended November, considering data free from seasonal variations (adjusted for the period).
The index for the Northeast Region grew by 0.5%., the Midwest Region index grew bty 0.6%, and the Southeast Region index, 0.9%. In the South Region, there was growth of 1.3%.
*Translated by Gabriel Pomerancblum
