Economic activity retreated about 2% in May, points BC

The national economic activity retreated almost 2% throughout May of this year. According to the monthly Economic Activity Index (IBC-Br), which the Central Bank released this Monday (17), considering the seasonal adjustment, the joint operations of industry, services and agriculture reached the equivalent of 145.59 points , against the 148.56 points registered in April.

Data without seasonal adjustment indicate that economic activity fell from the 147.82 points calculated in April, to 145.99 in May. The seasonally adjusted result, however, is 2.15% higher than the 142.92 points observed in May 2022.

Published monthly, the IBC-Br measures the evolution of economic activity in Brazil, using a different methodology from that used to measure the Gross Domestic Product (GDP). According to the BC itself, the index “contributes to the elaboration of the country’s monetary policy strategy”, but “it is not exactly a preview of the GDP”.

In early June, the Brazilian Institute of Geography and Statistics (IBGE) announced that GDP – the sum of all goods and services produced in the country, grew by 1.9 in the first quarter of this year, compared to the result of the last three months of 2022. In comparison with the first quarter of the year In the past, the Brazilian economy advanced 4%, while the result for the last 12 months represents an increase of 3.3%.