The September decline in Brazilian Central Bank's IBC-Br index was just a bump in the road to economic growth, says Espirito Santo Investment Bank. Local GDP proxy declined 0.52% from August, but indicated economy grew at annual rate of 4.7% in 3Q. "We expect economic activity figures to unveil positive readings ahead," firm says. Initial October readings for industry and retail sales are positive and should show government further stimulus no longer necessary, bank notes. In fact, Brazil "would be wise to reverse part of the incentives already granted to keep inflation under control," firm says.
Find us on Google+
No comments:
Post a Comment