Economic Climate Index slightly up, but recession continues
Brazil's Economic Climate Index (ICE) rose from 44 to 47 points between October 2015 and January this year. Measured by Fundação Getúlio Vargas every three months, the index ranges between 20 and 180 points, with a threshold at 100—scores above this value are regarded as favorable, whereas values lower than 100 are in the negative zone. The index consists of two sub-indexes for Expectations (IE) and Present Situation (ISA).
The improvement was driven by the future expectations index, which rose from 68 to 74. The Present Situation index, which assesses the current economic scenario, remained stable at 20. Brazil's results in the two sub-indicators for ICE, both of which were below 100, are understood to indicate a recession.
Among the 11 surveyed Latin American countries, only Argentina (109) and Paraguay (104) are above the benchmark value. Brazil stood below the Latin American average (72) and had the third lowest score, ahead only of Ecuador (44) and Venezuela (20). Other Latin American countries surveyed include Chile (65), Mexico (83), Uruguay (83), Colombia (88), Bolivia (90), and Peru (97).
Compared to other countries, Brazil stood below South Africa (48), Russia (51) China (72), France (94), the United Kingdom (103), the United States (105), Japan (109), India (122), and Germany (129).
Translated by Mayra Borges
Fonte: Economic Climate Index slightly up, but recession continues
