MercoPress. South Atlantic News Agency

Economic activity in Brazil expands for third month running

Brazil’s GDP likely grew 1% last year, snapping a two-year period of contraction as slow inflation and record low interest rates propped up consumer spending.

Economic activity in Brazil expanded for a third straight month in November, the longest stretch of gains since 2014, suggesting strong momentum at the end of the year. The central bank’s economic activity index rose 0.49% from October after seasonal adjustments

 The figures are the latest indication that Latin America’s largest economy may have shifted up a gear at the end of 2017 after a much-awaited investments revival in the third quarter.

Brazil’s gross domestic product likely grew around 1% last year, snapping a two-year period of contraction as slow inflation and record low interest rates propped up consumer spending.

Economists forecast 2.8% growth in 2018, according to a weekly central bank survey, which would be the fastest since 2013.

Analysts nevertheless say uncertainty around this year’s presidential elections, the most wide-open in decades, could keep a lid on investments.