Brazil economic activity up 4.5% in 2021: Central Bank

Brazil’s Economic Activity Index (IBC-Br) was up 0.33 percent in December 2021, as per figures released today (Feb. 11) by the Central Bank. The financial institution declared that, compared to December 2020, the index was up 1.30 percent, considering data seasonally adjusted for the period. The rate reached 139.73 points. Year to date, the index stood at 4.5 percent.

The index, considered a forecast for the country’s gross domestic product, is a way to gauge the evolution of the economic activity in the country and helps the Central Bank make decisions about its benchmark interest rate, the Selic, currently 10.75 percent a year.

The IBC-Br combines data on the level of activities across three sectors of the economy: industry, trade and services, and agriculture, in addition to the volume of taxes. According to the Central Bank, IBC-Br closed out the fourth quarter of the year up 0.01 percent from he period encompassing July–September, also taking into account deseasonalized figures.

The 4.5 percent result for the year is below the estimate calculated by the government, which predicted a GDP growth of 5.1 percent in 2021. The performance, however, is in line with the revision of the GDP made by the Institute of Applied Economic Research IPEA.