Brazil Economy Shrinks for Third Month Under High Interest Rates
- Central bank to keep restrictive policy even as it cuts rates
- Activity fell 0.06% in October in a sign economy is cooling
Photographer: Paulo Fridman/Bloomberg
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Brazil’s economic activity declined for a third straight month in October, suggesting 2023 is likely to end on a weak note as the central bank’s high interest rates finally dampen growth.
The bank’s economic activity index, a proxy for gross domestic product, fell 0.06% from the month prior, practically in line with analysts projections for a 0.1% drop. From a year ago, activity expanded 1.54%, according to data published on Wednesday.