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

All Sectors Up: For Brazil Minister, Crisis Only in the Rearview Mirror

The minister of Development, Industry and Foreign Trade of Brazil, Miguel Jorge, said today ...

Brazzil Magazine covers

Brazilian Mining Company Samarco Invests US$ 1.2 Billion

Samarco, a Brazilian mining company and industry, has announced its new investment plan baptized ...

Brazzil Magazine covers

US Visa Becomes a Little Easier for Brazilian Applicants

The United States is making the life of Brazilians willing to travel to that ...

Brazzil Magazine covers

Bolivia Accuses Brazil of Using Venezuela to Get Cheaper Gas Prices

The president of Bolivia’s state petroleum company said Monday, February 20, that suggestions Brazil ...

Brazzil Magazine covers

Brazil Blames US’s and EU’s Stinginess for Environmental Conference Failure

Brazil participated Monday, February 6, in the final day of the Special Session of ...

Brazzil Magazine covers

Bulk of Brazil’s Petrobras Investment to Be in US, Venezuela and Argentina

Brazil’s government owned oil company Petrobras announced plans to invest US$ 56.4 billion in ...