FX.co ★ Brazilian Activity Index Rises Again

The IBC-Br Index, a leading indicator of Brazil's economic activity and a reliable measure of GDP trends, experienced a 0.4% increase in February 2025 compared to the previous month. This follows a notable 0.9% rise in January and surpasses market predictions, which anticipated a more modest 0.2% uptick. The agriculture sector significantly contributed to this growth, posting an impressive 5.6% increase and serving as the primary driver of the overall expansion. Nevertheless, when the agricultural sector is excluded, overall economic activity actually fell by 0.2%. The services sector saw a minor increase of 0.2%, while industrial output decreased by 0.8%. Even though this marks the second successive month of expansion, the figures suggest a slowdown in economic growth compared to prior performance. Year-on-year, the IBC-Br index climbed by 4.1%, with a 12-month cumulative increase of 3.8%.