Brazilian Market Reacts to GDP Preview and Revised Economic Projections
2 sources · Brazil
Who reported this
- CNN Brasil
- Folha de S.Paulo
What the colours mean
- Left
- Centre-left
- Centre
- Centre-right
- Right
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Every source for this story reports from Brazil.
Every outlet covering this story shares the same political lean; read with that in mind.
The Brazilian stock market and currency fluctuated on Monday as investors analyzed new economic data and revised growth projections. The Ibovespa rose slightly, breaking a streak of nine consecutive sessions of decline, while the US dollar fell against the Brazilian real. The dollar was trading around R$ 5.20, influenced by both domestic data and a weakening of the currency abroad.
Economic indicators released by the Central Bank showed that the IBC-Br, a preview of the GDP, grew by 0.2 percent in the second quarter. However, the data revealed a 0.6 percent contraction in June, which some analysts suggest indicates a slowing economy that is heavily dependent on the agribusiness and oil sectors. Additionally, the IGP-10 inflation preview for August fell by 0.51 percent, contrary to expectations of a slight increase.
In the weekly Focus report, analysts revised their 2027 projections to reflect higher inflation and lower growth. The inflation estimate for next year rose to 4.24 percent from 4.22 percent, while the GDP growth projection for 2027 fell for the fourth consecutive week to 1.50 percent. Projections for the Selic interest rate remained unchanged, with expectations of 13.75 percent by the end of this year and 12 percent next year.
Corporate news also impacted the market as Casas Bahia filed for judicial recovery in a São Paulo court. This led to a drop of approximately 30 percent in the company's shares, while some of its competitors saw their stock prices rise.
How each side framed it
- Centre
- The coverage focused on technical economic indicators and market data without applying a specific political narrative.
Sources
- Centre CNN Brasil: Ibovespa fluctuates after Brazilian "GDP preview" and Focus; dollar falls
- Centre Folha de S.Paulo: Analysts raise inflation projection and see lower growth in 2027
- Centre Folha de S.Paulo: Dollar falls and Stock Market rises with market eyeing activity and inflation data in Brazil
100% of the statements in this article were traced back to the source articles listed above.