- November 17, Brasilia Brazil’s economy reversed course from its surprise positive third-quarter performance, thanks to a flourishing agriculture sector, as shown by central bank statistics released on Friday. The country’s GDP closed the quarter in negative territory.
- The thirds quarter saw a seasonally adjusted fall of 0.64 percent in the IBC-BR index, a crucial GDP predictor.
- It came after September saw a 0.06-percent decline from August, which is different from the 0.2-percent monthly growth that Reuters’s panel of analysts had predicted.
- After adjusting for seasonality, IBC-Br grew by 2.50% over a 12-month period and by 0.32% when compared to September 2022.
- Already calling attention to the “very poor” third quarter was Finance Minister Fernando Haddad, who blamed it on factors impacting company performance and, in turn, tax collections, such as increased borrowing rates and a decline in commodity prices relative to the same time last year.
- The finance ministry had previously predicted 3.2% GDP growth for this year, even though the first half had shown improvement. However, that estimate is anticipated to be reduced next week.
- In the meanwhile, 2.89 percent GDP growth is anticipated this year by private economists surveyed weekly by the central bank.
- About 70% of the nation’s activity is generated by the services sector, whose poor performance is reflected in the September IBC-BR index, according to economist Nicolas Borsoi of Novo Futura.
- “Our forecast of a 0.2 per cent decline in GDP in the third quarter is now slipping . ” I predict a much worse worse fourth quarter. We continue to believe in our 3 % annual growth estimate, although 2.8% growth is also plausible. This year’s success of the biggest economy in Latin America has been largely attributed to the extractive and agriculture sectors. Measures taken by President Luiz Inacio Lula da Silva’s administration to raise family disposable income and subsequently boost domestic demand also aided in its promotion.
Editor : Reshraman reporter