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GDP Preview advances for second month, BC says

IBC-Br

Data released this Monday (17) show that the Brazilian economy has grown again and expansion was 1.3% in February

After starting the year on the rise, economic activity gave another sign of resumption in the face of the reforms of the federal government. Driven by the services sector, the Brazilian economy recorded a 1.31% advance in February against January, in the adjusted series.

Considered a preview of Gross Domestic Product (GDP), which is the sum of all the country's wealth in a given period, the figure is part of the Central Bank's Economic Activity Index (IBC-BR) and was released on Monday (17) by the Central Bank. The Brazilian Institute of Geography and Statistics (IBGE) will present data equivalent to the economic activity of the first quarter in June.

The result is within the expected by the economic team, which has been signaling a growth of the economy still in the first quarter of this year. By 2017, GDP is expected to grow 0.5%.

The favorable result in February was positively influenced by the services sector, which grew 0.7% in comparison with January. Among services, the main data were recorded for services provided to households (+ 0.6%), transport and mail (+ 0.5%) and professional, administrative and complementary services (+ 0.2%).

What is IBC-Br 

The IBC-Br was built based on the evolution of agriculture, industry and the service sector. The calculations are made in a similar way to the ones IBGE does. The main objective of the Central Bank indicator is to predict a rough result for GDP.

With these numbers in hand, the BC is able to better design its strategies for controlling inflation. To reach the final result, 16 surveys and surveys enter the account.

In addition to the Monthly Survey of Trade and Monthly Industrial Survey, the results of the Extended Consumer Price Index (IPCA), foreign trade data, harvest survey and others are considered.