The Economic Activity Index (IBC-Br) increased by 0.33% in December 2021, according to data released today (11) by the Central Bank (BC). The BC reported that, in comparison with December 2020, the index increased by 1.30%, considering seasonally adjusted data (adjusted for the period). The rate reached 139.73 points. Year-to-date, the IBC-Br stood at 4.5%.
The index, considered a preview of the Gross Domestic Product (GDP), is a way of evaluating the evolution of Brazilian economic activity and helps the BC to make decisions about the basic interest ratethe Selic, currently set at 10.75% per year.
The IBC-Br incorporates information on the level of activity of the three sectors of the economy: industry, commerce and services and agriculture, in addition to the volume of taxes. According to the BC, the IBC-Br ended the fourth quarter of the year with a positive variation of 0.01% compared to the period between July and September, also considering seasonally adjusted data.
The result of 4.5% for the year is below the government’s expectations, which projected growth in the GDP of 5.1% in 2021. The result, however, is in line with the revision of GDP data made by the Institute of Applied Economic Research (Ipea).
