In April 2024, the IBC-Br Index of Economic Activity, a principal gauge of Brazilian output growth, demonstrated almost no movement, countering market projections of a 0.45% incline. This lacklustiure performance materialises following a revised 0.36% decline recorded in its previous month.
Industrial output in Brazil, a burgeoning global economic powerhouse, contracted by 0.5% in the referenced month, representing a significant shift from the 0.9% expansion observed in the preceding month. Such decrease is reminiscent of the industrial contraction witnessed in the global economic crisis during 2008 and 2009.
On another note, the high-performing services sector, a cornerstone of the Brazilian economy, depicted signs of losing momentum as it was noted down to a 0.5% growth rate in April, compared to 0.7% in the previous calendar page. This deceleration parallels similar trends captured in the services sector throughout the international arena, following the destabilising effects of the Covid-19 pandemic.
Nevertheless, underscoring the resilience of the Brazilian consumers, retail activity swelled at a faster clip, recording a commendable 0.9% growth rate in April – more than doubling its 0.3% growth rate seen in the previous month.
Viewing the figures on a non-seasonally adjusted basis, the IBC-Br Index depicted a positive growth trend on the year-over-year metrics. It surged by 4.01% when assessed against April 2023’s numbers, and boasted a 1.81% increase when evaluated over the last 12 rolling months. This mirrors a familiar narrative of recovery and resilience that has defined global economic trajectories in the post-pandemic world.
