Brazil’s economic activity grew 3.87% in July compared to the same month of the previous year, according to information released this Thursday by the country’s Central Bank.
The Economic Activity Index, an index created by the Brazilian issuing body as a monthly projection of the Gross Domestic Product (GDP), indicated that the Brazil grows at a rate of 2.09% year-on-year.
In the comparison with last June, the index advanced 1.17%, above the 0.30% expected by the financial market. In the first seven months of the year, the rise is 2.52%.
The data confirms a certain resilience of the Brazilian economy, although a slowdown is expected in the second half of the year in a global context still complicated by the impact of the military conflict between Russia and Ukraine.
The South American country has been experiencing a moderate reduction in interest rates, which rose to contain the advance of inflation, which, in turn, recorded improvements and stood at 8.73% annual.
The Brazilian economy is in a recovery phase after rising 4.6% in 2021, when it exceeded the 3.9% drop registered in 2020 due to the effects of the coronavirus pandemic.
For this year, the Brazilian government forecasts an expansion of the Gross Domestic Product (GDP) of 2%, in line with financial market expectations and slightly above the 1.7% forecast by the International Monetary Fund (IMF).
Source: Observadora
