MercoPress. South Atlantic News Agency
Economic activity down for a second straight month in Brazil
The poor performance is attributed, among other things to weak retail sales Brazilian economic activity fell for the second straight month in December, declining 1.35% relative to November, the Central Bank said in a report Friday. The Economic Activity Index, IBC-Br, considered a reliable predictor of GDP performance, was up 2.57% for all of 2013.
That figure topped official and market forecasts for roughly 2% growth. The IBC-Br edged up 0.17% in December compared to the same month of 2012, the report added.
A fall in industrial production and a weak retail sales performance were indicated as the main reasons for the poor showing.
The December figure reinforces the view among economists that the country's growth in the second half of last year was much weaker than in the first half.
Brazil's economy is projected to report an expansion of 2% in 2013--a rate that economists consider low for a developing nation. Growth was 0.9% in 2012.
Most dramatic is the fact that the economy's poor performance came amid high inflation, which is running around 6% per year, close to the upper limit set by the central bank.
The Brazilian Institute of Geography and Statistics, IBGE, will release official GDP data, which contains more comprehensive monthly information than the IBC-Br indicator, on Feb. 27.
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Read all comments0.9% growth in 2012.
Feb 15th, 2014 - 11:39 am 02.0% growth in 2013.
Well the whole BRICS didn't last very long did it.
Argentina was hoping to make up a lot of U$ with the car exports to Brazil in 2014. I wonder how they're going to make up the loss this year?
Feb 15th, 2014 - 11:55 am 0I hear imports are at a standstill with no U$ to pay for anything.
Winter is coming.
And there? How much cash assistance and food you can send?
Feb 15th, 2014 - 01:44 pm 0Commenting for this story is now closed.
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