Matthew Malinowski – Bloomberg, 09/14/2012
Brazil’s economic activity rose more than forecast in July, posting the biggest expansion in almost a year, as growth in the world’s second-biggest emerging market gains momentum.
The non-seasonally adjusted economic activity index rose 2.34 percent from a year earlier after rising 0.99 percent in June, the central bank said today in a report. The forecast was for a 2.1 percent expansion, according to the median estimate of 23 economists surveyed by Bloomberg. Activity rose a seasonally adjusted 0.42 percent in July, more than the 0.3 percent median forecast by 28 economists.
Today’s report is the latest sign that Brazil’s economy is turning the corner and is unlikely to need any further monetary stimulus. Since August 2011, the administration of President Dilma Rousseff has lowered interest rates more than any other Group of 20 nation to record 7.5 percent, cut taxes on company payrolls and consumer goods and encouraged banks to lower lending costs.