The economy of Brazil appears to be on a more solid footing than most observers believed, official data showed on Tuesday, with growth in the third quarter surpassing expectations and previous readings dating back to last year being revised upward. The fastest growth so far this year and throughout 2018 indicates that the largest economy in Latin America has avoided recession more than previously thought, and is accelerating towards the end of the year.
“The latest data and revisions are a much-needed boost for the economy, but above all, they reflect the effectiveness of the government’s economic program and the monetary policy of the Central Bank,” said Jason Vieira, chief economist at Infinity Asset Management in São Paulo.
José Francisco Gonçalves, chief economist at Banco Fator in São Paulo, agreed: “This is positive for the government’s reform agenda, but not so good if you were expecting interest rates to fall below 4.5%.”
Source: Reuters