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Brazil’s Economy Grows More Than Forecast Before Relief Measures

  • Central bank’s activity index rose 0.69% from May, est. +0.35%
  • Most analysts see key rate at 13.75% this year, 11% in 2023
Shoppers at the Uruguaiana Municipal Market in downtown Rio de Janeiro, Brazil, in April 2022. 

Shoppers at the Uruguaiana Municipal Market in downtown Rio de Janeiro, Brazil, in April 2022. 

Photographer: Maria Magdalena Arrellaga/Bloomberg
Updated on

Brazil’s economic activity expanded more than expected in June, showing resilience to an aggressive monetary tightening campaign that has so far been unable to contain inflation expectations. 

The central bank’s economic activity index, a proxy for gross domestic product, rose 0.69% from May, more than the 0.35% median estimate in a Bloomberg survey. From a year ago, activity increased 3.09%, the bank reported on Monday.