New Data Show Brazil Is in a Recession or About to Get into One

Brazzil Magazine covers

Brazilian flag and the real currency Brazil’s economic activity went down sharply in June as the World Cup football tournament shut down shops and factories across the country, adding to signs Latin America’s largest economy slipped into recession.

The Brazilian central bank’s IBC-Br economic activity index fell 1.48% in June from May in seasonally adjusted terms, the bank said on Friday. It was the fifth monthly decline in a row and the worst since May 2013. The slowdown was worse than the median estimate of a 1.3% drop.

As a result, economic activity fell 1.2% in the second quarter from the first period, versus a decline of 0.02% in the prior three months.

However the index, a gauge of activity in the farming, industrial and services sectors, has proven to be an imperfect barometer of gross domestic product data compiled by statistics agency IBGE, which is considered the official measure of economic growth.

Second-quarter GDP data will be released on Aug. 29. While initial data showed GDP rose 0.2% in the first quarter, many economists believe the result could be revised lower.

Central bank figures were revised lower on Friday to a drop of 0.80% in May, versus a prior 0.18% decline. Without seasonal adjustments, the economic index dropped 2.15% in June from the same month a year ago.

Quarter two-on-quarter two, the decline was 1.54%, according to non-seasonally adjusted data, since equal periods are being compared.

Mercopress

Tags:

You May Also Like

Brazzil Magazine covers

The Pataxó Front

"It is not an easy task to deal with gunmen and recover what we ...

Brazzil Magazine covers

Son Abducted by Mother to Brazil Can’t See US Father Even After Mother’s Death

On June 16, 2004 David Goldman said goodbye to his son, Sean, at Newark ...

Brazzil Magazine covers

Let Brazilians Sort Out the Problems of the Amazon

The destruction of the Amazon forest is a subject dear to the heart of ...

Brazzil Magazine covers

Young Brazilian Indian Killed Point Black When Bringing Water to Stranger

It was 10 pm, Saturday, March 17, when Helenildo Bataru Egiri, a 20-year-old member ...

Brazzil Magazine covers

Clashing Colors

Considered by some one of the best Brazilian painters, Cândido Portinari has also been ...

Brazzil Magazine covers

Brazil and UK Sign Agreement to Fight Torture

Brazil and the United Kingdom have signed a Memorandum of Understanding on combating torture. ...