Brazilian economic activity staged a robust rebound in June following a disastrous month in May, but the recovery was not enough to avoid an overall second quarter decline, according to Central Bank data released Wednesday. June’s Economic Activity Index (IBC-Br) jumped 3.29% versus May but that was only just enough to cancel out May’s decline of 3.28%. Overall, economic activity in the second quarter declined by 0.99%, according to the Central Bank. That left Brazil in net negative territory for growth so far this year, with the first quarter registering an anemic advance of only 0.2%. May was marked by an 11-day truckers’ strike, which inflicted major damage on the economy. Economists said they were heartened by the quick rebound in June, with activity likely to advance at a modest pace in the third quarter. Economists are still hoping for overall growth this year in a range of 1.0% to 1.5%. Positive factors include tame inflation and historically low interest rates. Negatives include slow growth in job creation and investor and consumer worries over political uncertainty.
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