Brazilian economy has biggest monthly drop in May, BC shows, after truckers strike

Brazilian economy has biggest monthly drop in May, BC shows, after truckers strike

By Marcela AyresBRASILIA (Reuters) - The Brazilian economy shrank in May in the most intense way it has ever seen, reflecting the strong effects of the truckers' strike that hurt ...

By Marcela AyresBRASILIA (Reuters) - The Brazilian economy shrank in May in the most intense way it has ever seen, reflecting the strong effects of the trucker strike that directly undermined activity and further shaken business and consumer confidence.The Central Bank Economic Activity Index (IBC-Br), a kind of Gross Domestic Product (GDP) flag, released on Monday, fell 3.34 percent in May over the previous month.It was the worst monthly reading in the indicator's historical series, which began in 2003.Reuters polls were expected to fall by 3.45 percent in May, in the median projections of experts consulted."The strike came and is the main factor yes. But there were already many indications that the economy would not show such expressive results," said the analyst of consultancy Trends Lucas Souza, citing declining trajectory of confidence indices."The fall (of May) should be partially reversed in June and in the coming months. But, given the nature of the instability tha...


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