Brazilian GDP growth close to red hot

The Central Bank reports that at the moment economic activity in Brazil is running at one of the highest rates in the world. Its most recent Regional Activity Report (IBCR) found that growth in the North region was 4.3% for the three-month period ending in February, compared to the prior three-month period ending in November. “A strong, dynamic rise in economic activity now accompanied by inflation pressure,” says the report.

In the Northeast region, growth of 2.2%, with strong retail sales and expansion of credit.

In the Central West region, in spite of a downturn in farm produce prices, there was overall growth of 2.8%.

In the Southeast, growth of 3.2%, and rising inflation pressure. This is the country’s most industrialized region.

In the South region, wages and credit expanded strongly boosting growth of 3.5% during the three-month period.
All in all, the Central Bank regional economic activity report showed average GDP growth of 2.2% for the whole country during the three-month period. Annualized that works out to well over 8%. The government has now raised its estimate for GDP growth from 5.2%  to 5.5%, but analysts say it will be at least 6%. There are also reports that the government may increase the primary surplus above the target of 3.3% of GDP – something that will be possible with more tax revenue from more economic activity.