Brazil Recovery Continues

The Brazilian economic activity index increased 0.5% and on a year-over-year basis the economy improved at a 2.8% rate.

According to analysts from Wells Fargo, domestic consumption as well as foreign consumption, have been trending up, which means that the economy seems to be, finally, hitting in all cylinders. The Brazilian real is about to close Saturday at the highest level since October against the US dollar, FXStreet reported.

Wells Fargo report said: “The Brazilian economy continued its march toward recovery in November according to the economic activity index, a monthly proxy for the behavior of gross domestic product. The index increased 0.5% sequentially, slightly above the 0.4% analysts were expecting. On a year-over-year basis the economy improved at a 2.8% rate, slightly below the upwardly revised 3.1% year-over-year rate reported for October.”

“Still, it is important to note that comparisons are being made against very low base numbers as the economy experienced the longest period of recession in recorded history. Nevertheless, it is clear that domestic consumption as well as foreign consumption, i.e., exports, have been trending up, which means that the economy seems to be, finally, hitting in all cylinders.”