Economics

Brazil Economy Chief Sees Recession Ending After Activity Jump

  • Economy Minister Guedes points to strong monetary stimulus
  • Two-speed recovery seen as retail surges, services struggle
Paulo Guedes
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Brazil is emerging from a recession caused by the coronavirus, Economy Minister Paulo Guedes said on Friday hours after the publication of a closely-watched indicator showing activity surged in the third quarter.

The Brazilian economy is benefiting from a new policy mix of low interest rates and a weaker currency, boosting domestic demand and exports, Guedes said during a webcast. Earlier, the central bank reported that its economic activity index, considered a proxy for gross domestic product, rose 9.47% in the July-September period compared to the previous three months.