Brazil’s Economic Uncertainty Indicator retreats
The Economic Uncertainty Indicator for Brazil (IIE-Br), calculated by FGV’s Brazilian Institute of Economics (IBRE), fell 7.1 points between January and February 2018, down from 109.6 points to 102.5 points. The results were announced on February 28.
“The drop seen in February reflects the good moment lived by the domestic economy and the relatively stable political front. In addition, the Carnaval holiday and the shift in attention due to federal intervention in the State of Rio de Janeiro may have contributed to the decrease in the indicator, but these facts will only be confirmed later on. For the next few months, we expect greater volatility in the indicator, mainly due to the upcoming election period, as well as the greater external instability”, said IBRE economist Pedro Costa Ferreira.
The IIE-Br drop was determined by all of its components. The IIE-Br media component fell 7.1 points in the month, contributing accounting for -6.7 points in the overall index, while IIE-Br market fell -2.2 points, accounting for -0.4 in the overall index. IIE-Br expectation retreated 0.1 point and did not affect the economic uncertainty indicator for Brazil.
The complete results are available on the website.
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