Such notification was the biggest setback in the last 10 months of the largest South American economy.
GDP is the sum of all goods and services produced in the country and is used to measure the evolution of the economy. In 2021, Brazil registered a growth of 4.6 percent.
What was published this Thursday represents the largest drop in the level of activity since March 2021, when it fell 1.67 percent.
Also the first monthly drop in the indicator since September last year.
The collapse was calculated after seasonal adjustment, a so-called compensation to compare different periods.
Regarding January 2021, the Central Bank reported that the activity level indicator published this Thursday was stable (+0.01 percent).
Likewise, the financial company showed a growth of 4.73 percent in the 12-month period ended in January. In this case, it was calculated without seasonal adjustment.
With the drop in that first month, the activity index reached 138.48 points, the lowest level since December 2020, when it stood at 138.18.
The indicator is published amid a slowdown in the economy, the result of rising inflation and interest rates, as well as the conflict in Ukraine, which affects global activity.
For this year, the financial market estimates an increase of 0.49 percent, with a sharp slowdown compared to the growth of 4.6 in 2021. According to the Ministry of Economy, the latest figure, published in November of the last calendar, indicates a growth of 2.1 percent in 2022, but this value should be revised downwards.
The IBC-Br of the Central Bank is an indicator created to try to anticipate the result of the GDP, but it does not always show proximity to the official data published by the Brazilian Institute of Geography and Statistics.
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