Go To Top


17th April, 2017

Economic activity in Brazil grew in February at the fastest pace since January 2010, a central bank indicator showed on Monday, in the strongest sign yet that Latin America's largest economy is emerging from a two-year recession.

Bumper harvests are expected to have lifted agricultural production in the first quarter of the year, while industrial output improved on a pick up in car exports. Brazil's IBC index rose 1.31 percent from January after seasonal adjustments, the central bank said, after an upwardly revised increase of 0.62 percent in the previous month. The median expectation in a recent poll of economists was for an increase of 0.55 percent in February.

Evidence of economic growth in Brazil after two years of a severe downturn suggests that government efforts to bolster growth through deep interest rate cuts and market-friendly reforms could be starting to bear fruit. Commerce and services were forecast to take longer to recover due to record-high unemployment, but nevertheless grew in the beginning of the year, data showed earlier this month.

"The very large upward revisions to the January retail sales and services sector data, allied with the expected large expansion of the agricultural sector gives us confidence that after an 11-quarter-long recession the economy has reached an inflexion point," wrote Alberto Ramos, head of Latin America economic research at Goldman Sachs. The index measures activity in agriculture, industry and services and is considered an advance indicator of gross domestic product data. Brazil's GDP is forecast to grow 0.4 percent in 2017 from 2016, when it shrank 3.6 percent, according to a weekly central bank survey of economists also on Monday.

"The economy will likely get to the end of this year with a meaningful growth rate," Finance Minister Henrique Meirelles said in a speech during an event in Brasilia on Monday. Economists warn, however, that the economic recovery could falter if President Michel Temer fails to pass a landmark pension reform through Congress in coming months or is toppled by a massive corruption scandal that has ensnared many of the nation's senior politicians.

The reform is seen as a crucial step to keeping Brazil's debt under control in the long term. "Without the reform or with the approval of a weakened proposal, chances are high that the government will not be able to enforce its spending cap and public debt will become unsustainable," economists with Itau Unibanco said in a note.

Source: Reuters

Latest News

  • Estacao Hack


    28th August, 2017

    Facebook Inc on Monday unveiled its first training centre in Latin America for coders and entrepreneurs, encouraging technology careers for young Brazilians saddled with unemployment after a deep economic crisis.

  • EletroBras logo


    23rd August, 2017

    Brazil on Monday floated a proposal to cede control of the country's biggest power utility, Eletrobras, in the boldest privatisation yet by a government struggling to close a record budget deficit, sending Eletrobras' shares soaring in after-market trading.

  • AT&T Time Warner merger


    22nd August, 2017

    Brazil’s antitrust watchdog Cade said AT&T’s US$85.4 billion deal for Time Warner poses a high risk to competition, a potential complication that threatens to delay the final approval process.

  • Magazine Luiza's Lu


    14th August, 2017

    Lu’s not like other girls on Tinder. For starters, she’s an avatar. The digital saleswoman popped up on the dating app last June, offering coupons as part of Brazilian retailer Magazine Luiza SA’s strategy to boost e-commerce. She’s been surprisingly effective, lifting the company’s online sales by almost five times the pace of the overall market in the first half of the year and helping make Magazine Luiza the world’s best-performing major retail stock.

  • Embraer E175-2 Skywest


    28th July, 2017

    Embraer SA returned to profit in the second quarter as the Brazilian aircraft manufacturer ramped up deliveries of narrow body E-Jets to airlines and brought down operating costs through job cuts and controls on corporate expenses.

  • Carrefour


    18th July, 2017

    Grupo Carrefour Brasil SA's initial public offering could price at the bottom of a suggested price range later on Tuesday, reflecting concern over too stretched a valuation for Brazil's biggest supermarket chain, three people familiar with the matter said.

  • Soy bags line a field in Mato Grosso


    4th July, 2017

    Brazilian farmers are discovering a downside to becoming one of the world’s top producers of soybeans: they’re running out of room to store all the unsold supply.

  • JBS logo


    20th June, 2016

    Meatpacker JBS today unveiled a R$6 billion (US$1.8 billion) divestment plan, putting dairy, poultry and cattle feeding assets on the block to cut debt after a corruption scandal raised concerns about its financing costs.

  • Paulo Cesar Silva

    19th June, 2017


    Paulo Cesar Silva, chief executive officer at Embraer SA, discusses the impact of political turmoil in Brazil, progress made on the E195 Mark 2 aircraft, and the potential for aircraft deals with Iran. He speaks with Bloomberg's Guy Johnson from the Paris Air Show on "Bloomberg Surveillance." (Source: Bloomberg)


  • Daihatsu Sirion


    14th June, 2017

    Daihatsu Motors said today it plans to launch compact cars in Brazil, as parent company Toyota Motor Corp looks to its minicar subsidiary to help it expand in emerging markets and produce lower-cost, quality vehicles.