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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The eurozone experienced a slight rebound in its economic growth during the second quarter, after having stagnated in the first three months of the year, although difficulties persist in Germany, according to what was revealed in a first estimate published by Eurostat.

Between the months of April and June, the Gross Domestic Product (GDP) of the 20 countries that share the single currency increased by 0.3 % compared to the previous quarter. It is important to mention that in the first quarter, growth had completely stagnated (+0 %), a figure that has been revised by Eurostat, since a slight decrease of 0.1 % had initially been reported.

In relation to inflation in the euro area, a decline continued to be observed in the month of July, reaching 5.3 % after having reached 5.5 % in June and 6.1 % in May. This decrease has been due to a new decrease in energy prices, according to data announced by Eurostat last Monday.

However, it should be noted that food prices continue to rise at a high rate, with a year-on-year inflation rate of 10.8 %, although this figure represents a slight decrease from the 11.6 % registered in June, according to the European statistical office.

It is important to note that the current inflation rate remains well above the 2 % target set by the European Central Bank (ECB).

K. Tovar

Source: Bancaynegocios

(Reference image source: Unsplash+)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

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