The longest recession in Brazilian history may be at an end, according to Central Bank data released Monday. The Central Bank’s Economic Activity Index (IBC-Br) advanced in the first quarter of 2017 by a modest 1.12% against the fourth quarter of 2016. It was the first quarter-on-quarter rise since 2014 and could signal the end of the longest recession in Brazilian history. The IBC-Br is not considered a definitive indicator, however. That role is reserved for the Brazilian Census Bureau’s (IBGE) gross domestic product report. The IBGE’s report on first quarter GDP will be released on June 1 and is expected to mirror the IBC-Br figures. The rise in first quarter economic activity was led by agriculture. Brazil is expected to harvest a record grain and oilseeds crop this year. Exports and cap ital investments have also grown in recent months while consumer buying and services have remained weak.
Link to Central Bank release