In a recent report, the Central Bank announced that Brazil’s economic activity experienced a contraction of 0.06 % in September compared to the previous month, reaching its lowest point since January. The monthly index of economic activity, used to anticipate the trend of the Gross Domestic Product (GDP), indicated a growth of 1.1 % compared to the same month last year, according to seasonally adjusted data.

When analyzing the quarters, the largest Latin American economy recorded a decrease of 0.64 % between July and September compared to the previous three months.

Although the Central Bank increased its growth forecast for this year from 2 % to 2.9 % in September, attributing this adjustment to the solid performance of the agricultural sector, it warned that economic activity will weaken in the coming quarters. The projection now points to 1.8 % growth by 2024.

Although the federal government remains more optimistic, expecting economic growth above 3 % this year, especially after surprising growth in the second quarter, the long-term outlook suggests economic challenges on the horizon.

K. Tovar

Source: Bancaynegocios

(Referential image source: Raphael Nogueira, Unsplash)

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La entrada Brazil’s economy contracted in September apareció primero en Bitfinance.

Authorities of El Salvador announced that it will be the only country in Central America that by the end of 2021 will have recovered the levels of economic activity registered before the Covid-19 pandemic. This was reported by Douglas Rodríguez, President of the Central Reserve Bank (BCR).

Indeed, the Central American country has already reached the levels of production and consumption registered before the global pandemic began, as well as in exports and formal employment rates. In addition, companies have found better scenarios and more incentives to resume their work.

The economic projections for the end of 2021 foresee that the Gross Domestic Product (GDP) “reaches a positive variation of 9 %, the second highest in the region.”

The International Monetary Fund supports the figures issued by the Salvadoran government, and considers that “President Bukele and his team have made the right decisions at the most opportune moment.”

The president of the BCR also indicated that the deputy director of the IMF’s Western Hemisphere department, Julie Kosack, recognized the government’s timely management in the face of the Covid-19 pandemic, by taking “counter-cyclical measures and an expansive fiscal policy that will soon bear fruit.”

According to Rodríguez, the executive will continue developing projects and activities that allow to boost the productive sectors and take care of the family economy.

M. Rodríguez

Source: finanzasdigital.com

La entrada El Salvador is heading towards economic recovery apareció primero en Bitfinance.

The Venezuelan Finance Observatory reported that “economic activity in Venezuela fell 2.2 % in the second quarter of 2021″, registering a total of 25 consecutive quarters in the fall in the economic activity index. However, the reported figure is lower than that recorded in the first quarter, which reached 33.7 %.

The non-governmental organization highlighted that the indicator is made up of different sectors: oil, finance and government, in which the devaluation was evidenced as a consequence of the shortage of “income and inflation”.

According to the organization, one of the most affected sectors is the financial one, due to the banking reserve and the size of the sector. The economic collapse in Venezuela has had a significant and negative impact on “the wages of active workers, retirees and pensioners in the country, which have substantially reduced consumption in their homes.”

It is important to highlight that the NGO recently reported that inflation in the Caribbean country was in the order of 10.6 %, while the interannual was at 1,743 % and that accumulated in the last 8 months of 2021 adds up to 470.3 %.

The devaluation in Venezuela has caused a process of informal dollarization of the country, where citizens carry out almost all their transactions of purchase and sale of services and products with the US dollar.

M. Rodríguez

Source: elnacional.com

La entrada Economic activity in Venezuela fell 2.2 % apareció primero en Bitfinance.

The second wave of the Covid-19 pandemic has left a deep mark in Chile. However, according to data provided by the Central Bank recently, during the second quarter of the year the country’s Gross Domestic Product (GDP) showed a slight growth of 1 %.

Seasonal data shows the activation of commercial activity and key sectors in Chile such as mining. One of the main factors that has driven this growth dynamic was the increase in domestic demand between the months of March and June of this year.

According to the reports, domestic demand was 31.7 % year-on-year and 1.6 % compared to the first quarter, “mainly due to household consumption, driven by economic support measures and the withdrawal of pension funds.”

Additionally, mining showed a year-on-year growth of 2.8 % and copper activity showed positive signs supported by the opening of a new processing plant and better laws that regulate the activity.

Regarding the GDP growth projections for this year, in June the Central Bank of Chile indicated that they could be between 8.5 and 9.5 %, an estimate that coincides with that estimated by the Economic Commission for Latin America and the Caribbean (ECLAC), located at 8 %.

M.Pino

With information from national and international media

La entrada Chile’s GDP registered 1 % growth in the second quarter of 2021 apareció primero en Bitfinance.