Brazil economic activity expands for third month in November

Published 15/01/2018 in Business, Economy & Finance

Brazil economic activity expands for third month in November
People walk past a store with signboards offering 70% off on store products in downtown Sao Paulo, Brazil January 9, 2018. REUTERS/Paulo Whitaker

BRASILIA (Reuters) – Economic activity in Brazil expanded for a third straight month in November, the longest stretch of gains since 2014, suggesting strong momentum at the end of the year.

The central bank’s economic activity index rose 0.49 percent from October after seasonal adjustments, in line with the median 0.50 percent forecast in a Reuters poll of economists. BRIBC=ECI

The figures are the latest indication that Latin America’s largest economy may have shifted up a gear at the end of 2017 after a much-awaited investments revival in the third quarter.

Brazil’s gross domestic product likely grew around 1 percent last year, snapping a two-year period of contraction as slow inflation and record low interest rates propped up consumer spending.

Economists forecast 2.8 percent growth in 2018, according to a weekly central bank survey, which would be the fastest since 2013.

Analysts nevertheless say uncertainty around this year’s presidential elections, the most wide-open in decades, could keep a lid on investments.

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