The Brazilian economy grew by 1.36% in the third quarter of this year, according to Central Bank data released this Monday (14), measured by the BC Economic Activity Index (IBC-Br), seen as a kind of “preview” of GDP (Gross Domestic Product).
In September, the data registered a positive change of 0.05%, after having contracted 1.13% in August. The median of expectations pointed to a drop of 0.15%, according to a survey by Bloomberg.
In comparison with September of the previous year, the IBC-Br had a high of 4%, while in the 12-month period it increased by 2.34%, according to observed numbers.
The IBGE will release official GDP data for the third quarter on December 1, after reporting that the economy grew by 1.2% in the second quarter.
The expectation for the end of this year is for the economy to weaken, even in the face of fiscal stimulus, as the lagged effects of the strong monetary tightening adopted by the Central Bank begin to appear.
With inflation weighing on consumers’ pockets this year, the BC raised the basic Selic interest rate to the current 13.75%, a level at which it should end 2022.
One of the big concerns involves the extra-ceiling spending plans for Luiz Inácio Lula da Silva’s third term as president. Investors are waiting for the text of the Transition PEC to be defined to allow for extra-ceiling spending in 2023.
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
