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Brazil's economic activity falls in Feb by most in nine months

Reuters

SAO PAULO, April 15 () - Brazilian economic activity contracted in February by the most in nine months, a central bank indicator showed on Monday, adding to concerns about a sluggish start to the year for Latin America's largest economy.

The central bank's IBC-BR economic activity index, a leading indicator of gross domestic product (GDP), fell 0.73 percent in February from January. That followed a revised drop of 0.31 percent in January, a smaller contraction than first reported.

"Economic indicators so far continue to suggest a slight drop of 0.1 percent for GDP in the first quarter of this year," Bradesco economists wrote in a note.

Treasury Secretary Mansueto Almeida told last week that Brazil must stick to its fiscal commitments and cut public spending for the long-term benefit of the country, even if that has a detrimental short-term effect on the economy.


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Reuters

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