Economic activity in Brazil declined by 4.55 percent in 2016, compared with the previous year, the Brazilian Central Bank said Thursday. The bank’s Economic Activity Index, or IBC-Br, showed a disappointing 0.26 percent decline in activity in December compared to the previous month. All figures are seasonally adjusted. The index is based on a number of variables but is not as inclusive as gross domestic product. The Brazilian Census Bureau (IBGE) is due to release 2016 GDP data March 7. Economists are expecting a 3.5 percent decline in GDP for 2016, marking the second straight year of recession. GDP fell back by 3.8 percent in 2015. Brazil’s economy is beset with problems ranging from inflation and high interest rates to massive government deficits and unemployment. Prospects for 2017, however, are brighter. Inflation has begun to ebb while the Central Bank has been engaged in an accelerated program of monetary loosening. Economists expect a modest breakthrough this year, with 2017 GDP rising by about 1.0 percent.
Link to Central Bank releaseMore Testimonials