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

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

Why This Brazilian Wunderkind Deserves to Win the Next Indy 500

In one of the more inexplicable developments in recent Indianapolis 500 history Panther Racing ...

Brazil: Lula Should Know He’s Not a Czar

The government of Brazil erred in speaking against the report in The New York ...

Brazil’s Scalina Opens Markets Selling Lingerie in the Middle East

The company Scalina, Brazilian manufacturer of the brands TriFil and Scala, is investing in ...

Brazil See Signs of a Recovering Economy

The number of the first quarter are already giving signs of improvement in the ...

Brazil Serious on Delivering the Internet to Everyone

Brazil’s Minister of Communications, EunÀ­cio Oliveira, participated, yesterday, in the opening of the 1st ...

Brazil Makes It Easier to Buy in Paraguay

At a meeting on Friday, April 1st, the Brazilian and Paraguayan governments decided on ...

Brazilian exports

Brazil Exports Start Month with a Bang

In just one business day this month, which was Friday last week, Brazilian exports ...

Brazil Plans to Start Production in Just-Discovered Giant Oilfield by 2010

Brazil's state-controlled oil multinational company Petrobras has plans to invest US$ 2 billion to ...

American Dollars Are Paying for Defecting Cubans in Brazil

A short while ago I was telling about the brain drain, that is disgusting. ...

Brazil and Argentina Bury the Hatchet After WTO Treaty’s Clash

Brazil and Argentina ratified their "strategic alliance" on Monday during a business seminar opened ...