Central Bank Indicator Surpasses Expectations, Signalling Economic Recovery

04/18/2017 - 12h39

A Central Bank indicator that measures economic growth registered that the country's economy accelerated by 1.31% in February when compared to January, surpassing expectations.

The IBCBr indicator, which was created to try and predict the GDP (Gross Domestic Product), had predicted a 0.55% increase.

The unexpected result is being attributed to a change in the methodology used to calculate economic activity regarding trade and services, as well as the expectation of a record breaking harvest of grains.

Economists believe that after a long recession period, the economy is beginning to stabilize as certain sectors start to recover. Brazil has been in recession since the second quarter of 2014.

Translated by THOMAS MATHEWSON

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