Brazil’s economic activity rises, but still falls short of expectations

The Central Bank’s economic activity index (IBC-Br), a measurement often seen as predictive of Brazil’s official GDP, rose by 2.15 percent in July. It is the third-straight month of positive results, but the index fell short of the +3.4-percent expected by economists. 

IBC-Br is currently 4.89 percent below July 2019 levels — a drop smaller than the 5.25-percent drop economists expect for the annual GDP.

The Central Bank has also reviewed June’s performance to a 5.31-percent increase, from the +4.89 percent initially reported. 

Market expectations for Brazils’ economic activity

The Central Bank’s Focus Report, a weekly survey with top-rated investment firms, saw an improvement in expectations for the Brazilian economy. The median prediction for the annual GDP growth rate sits at -5.11 percent, up from last week’s -5.31 percent. Inflation projections, however, have grown to 1.94 percent, from 1.78 percent a week ago — following a recent spike on food prices.

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