Economics
Brazil Recovery Looks Weak After Activity Lags All Forecasts
- May economic activity +1.31% m/m and -14.24% y/y: central bank
- Services deepened drop in May, while retail and industry rose
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Brazil’s economy expanded less than expected in May, according to a key measure of activity, indicating an unchecked coronavirus outbreak is holding back demand even as some establishments reopen.
The central bank’s economic activity index, which is a proxy for gross domestic product, rose by 1.31% from April, less than all estimates in a Bloomberg survey that had a median forecast for a 4.5% gain. Activity dropped by 14.24% from a year ago, according to a report on the bank’s website on Tuesday.