Brazil’s economic growth slowed in the second quarter, according to a central bank index, following an enthusiastic start to the year fueled by strong agricultural output.
From April to June, the IBC-BR economic activity index, a key measure of GDP, increased by 0.43% seasonally adjusted.
The IBC-BR grew 0.63% from May to June, matching the 0.6% growth predicted by economists polled by Reuters.
The index’s 12-month growth rate was 3.35%, according to observed data. The official announcement of second-quarter GDP figures is set for September 1.
Latin America’s largest economy rose by 1.9% in the first quarter, powered by a stronger-than-expected farm sector.
In June, the central bank predicted that the country’s GDP would expand 2% this year, predicting a downturn following a strong first quarter due to the combined effect of tight domestic monetary policy and a slowing in global growth.
Policymakers reduced the benchmark interest rate by 50 basis points to 13.25% earlier this month after maintaining it at a six-year high for over a year in an effort to contain inflation.
