Economic activity in Brazil declined in May, the central bank’s index showed, indicating a non-linear path for the country’s growth, according to “reuters.”
The IBC-BR Economic Activity Index, a key measure of gross domestic product, fell by a seasonally adjusted 2% compared to April.
This was the largest monthly decline since March 2021. The series of observed data recorded an increase of 2.15% year-on-year, resulting in a cumulative growth rate of 3.43% over the past 12 months.
To combat inflationary pressures, Brazil’s central bank has maintained its benchmark interest rate at a record high of 13.75% since September.
However, the Central Bank of Brazil has recently indicated the possibility of a rate cut in August if the inflation scenario continues to improve.
