Central Bank: Preliminary GDP figures indicate a 1,64% increase in 2012.

Kelly Oliveira
Reporter from Agência Brasil

Brasilia – Brazilian economic activity grew 1,64% last year. This is according to the Central Bank's Economic Activity Index (IBC-Br), released this Wednesday, the 20th, by the institution.

In the last month of the year, the economy was growing at a slower pace than in November. According to seasonally adjusted data, in December, compared to the previous month, economic activity grew by 0,26%. In November, the expansion, according to revised data, was 0,57%. When comparing December 2012 to the same month of the previous year, growth was 1,19%, according to the index without seasonal adjustments, considered the most appropriate for this type of comparison.

Quarterly data also show a slowdown in the economy. In the last quarter of last year, compared to the previous three-month period, expansion was 0,62%, according to period-adjusted data. In the third quarter compared to the second, there was growth of 1,12%.

The IBC-Br is a way to assess and anticipate the evolution of Brazilian economic activity. Monitoring the IBC-Br is considered important by the Central Bank for a better understanding of economic activity. This monitoring also contributes to the decisions of the Monetary Policy Committee (Copom), responsible for setting the basic interest rate, currently at 7,25% per year.

In 2012, the Central Bank adopted a series of measures to try to stimulate the economy, such as highway and railway concessions, an increase in the credit limit for states, tax reductions, among others. In addition, the Monetary Policy Committee (Copom) reduced the Selic rate until October, to the lowest level ever recorded. In November, it decided to maintain the Selic rate at 7,25% per year, which also occurred in January of this year.

Edited by: Juliana Andrade