The Brazilian Central Bank’s Economic Activity Index (IBC-Br) plunged 3.34% in May versus the previous month and 2.9% against May of 2017, the Central Bank said Monday. The main reason for the sharp decline in economic activity was a long truckers’ strike during May. Effects of the strike may continue to undermine economic activity in June, according to economists. The 11-day strike will also affect overall 2018 performance. The International Monetary Fund, on Monday, issued its latest prognostication for Brazil’s economy, forecasting 1.8% growth this year, down from its previous projection of 2.3%. Brazil’s government has already ratcheted down its GDP forecast, which now stands at 1.6% for 2018. In January, the government was forecasting 3% growth for this year. Political uncertainties and low levels of consumer and business confidence are also undermining growth, according to economists.
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