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Brazil economic activity slows in 2nd quarter
August 16, 2013, 6:53 am

The Brazilian government has set a growth target of 3% this year [Getty Images]

The Brazilian government has set a growth target of 3% this year [Getty Images]

New data from Brazil’s Central Bank shows economic activity slowed down in the second quarter of 2013.

The Economic Activity Index (IBC-Br) edged up 0.89 per cent in the second quarter, compared to the 1.1-per cent surge in the first.

However, growth was up 2.9 percent, compared with the same period in 2012.

The central bank will adjust the annual basic interest rate based on the IBC-Br index.

Brazil’s official gross domestic product (GDP) figure is expected to be released by statistics body IBGE on 30th August.

Compared on a yearly basis, economic activity expanded 3.97 per cent, said the bank.

The central bank raised interest rates to 8.5 percent last month.

Brazilian government has set a target of 3 per cent growth this year.

The Brazilian government will further trim its 2013 budget by 10 billion reais (about $4.5 billion), Finance Minister Guido Mantega said in July.

In July, food prices have come down in Brazil for the first time in two years.

Brazil’s food prices dropped 0.33 per cent in July, clothing prices fell 0.39 per cent and transportation costs contracted 0.66 per cent, Brazil’s benchmark ICPA index showed.


Source: Agencies 

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