Brazil Economy Risks Extending Recession as October Disappoints
- Central bank activity index dropped 0.4% from previous month
- Growth is losing momentum with high interest rates, inflation
The Conjunto Nacional shopping center in Brasilia, Brazil, on Aug. 31, 2021.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Brazil’s economy had a bad start to the fourth quarter, underscoring risks of an extended recession as policy makers further tighten monetary policy to battle above-target inflation.
The central bank’s economic activity index, a proxy for gross domestic product, fell 0.4% in October from the prior month, in line with the median estimate from economists in a Bloomberg survey. September’s reading was revised down to a 0.46% decline. From a year ago, activity plunged 1.48%, more than double the drop estimated by analysts, the bank reported on Wednesday.