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Brazilian economy advances 0.25% in the second quarter

central bank

Considered a priori for the Gross Domestic Product (GDP), IBC-Br serves as a parameter to evaluate the behavior of the Brazilian economy

For the second consecutive time, the Central Bank's Economic Activity Index (IBC-Br) registered growth. In April, May and June, the index accumulated a 0.25% increase  when compared to the first quarter of 2017. 

The data released on Thursday (17) also show that, in June alone, the IBC-Br recorded growth of 0.50%, in comparison with May.  Considered a preliminary of the Gross Domestic Product (GDP),  the index is measured by the Central Bank itself and serves as a parameter to evaluate the behavior of the Brazilian economy.

At the same time, the monetary authority maintained the growth of the previous quarter, ended in May, at 1.12%, in the face of the recovery of the trade, services and industry sectors. 

The result reinforces the understanding of both the financial market and the economic team that the Brazilian economy has been consolidating the resumption of economic activity, even gradually.

In the first quarter, the Gross Domestic Product (GDP) grew 1% in comparison with the immediately previous quarter. For this year, the economy is expected to grow 0.34%, according to the Bulletin Focus, a document prepared by the Central Bank and which gathers analysts projections from financial institutions.

Promising future

Faced with the effects of economic reforms, Brazil has been able to escape the perverse combination of low growth, high inflation and rampant interest rates.

Currently, the country's official inflation is at 2.71%, the lowest since 1999, while the basic interest rate has returned to a single digit, fixed at 9.25% per year. For the year, these rates are expected to close the year at 3.5% and 7.50%, respectively.