Brazil: Economic growth continued in November - Wells Fargo
|The Brazilian economic activity index increased 0.5% and on a year-over-year basis the economy improved at a 2.8% rate. According to analysts from Wells Fargo, domestic consumption as well as foreign consumption, have been trending up, which means that the economy seems to be, finally, hitting in all cylinder. The Brazilian real is about to close today at the highest level since October against the US Dollar.
Key Quotes:
“The Brazilian economy continued its march toward recovery in November according to the economic activity index, a monthly proxy for the behavior of gross domestic product. The index increased 0.5 percent sequentially, slightly above the 0.4 percent analysts were expecting. On a year-over-year basis the economy improved at a 2.8 percent rate, slightly below the upwardly revised 3.1 percent year-over-year rate reported for October.”
“Still, it is important to note that comparisons are being made against very low base numbers as the economy experienced the longest period of recession in recorded history. Nevertheless, it is clear that domestic consumption as well as foreign consumption, i.e., exports, have been trending up, which means that the economy seems to be, finally, hitting in all cylinders. And this is good news for the immediate future, even though uncertainties remain high as the country prepares to go to the polls later in the year and exPresident Lula da Silva, who continues to lead in the polls, is still facing serious legal troubles in several corruption cases.”
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