BRASILIA--Brazil's economy showed a mixed recovery midway through the second quarter despite still the ample availability of credit locally, the country's central bank said Monday.
While credit availability expanded at a pace of more than 4% in the three months through the end of May, activity advanced only 1.4% in the period, the bank reported in its regional bulletin.
The institution said the uneven results reflected varying activity in key sectors, as a recovery in mining and commerce failed to keep pace with industry and agriculture.
"The growth of regional economic growth, consistent with the relative importance of the main activities in each region, has occurred in an unequal manner," the bank said.
Economic activity saw the strongest recovery in the southern region of the country, advancing 6.5%, the bank said.
Activity rose by 0.5% in the central west and northeastern regions of the country, but dropped by 0.3% and 0.6%, respectively, in the southeastern and northern regions of the country.
Despite the mixed results, the bank said the country's labor market continued to support a recovery in consumption. Also supporting growth was the expansion of industrial production, especially in the capital-goods sector.
The uneven resumption of growth in Brazil has come as the central bank has raised the country's benchmark Selic interest rate more than one percentage point so far this year to 8.5%, as part of an effort to curb accelerated inflation.
According to recent central bank market surveys, the country's economy is seen growing by about 2.2% this year following growth of only about 0.9% in 2012.
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While credit availability expanded at a pace of more than 4% in the three months through the end of May, activity advanced only 1.4% in the period, the bank reported in its regional bulletin.
The institution said the uneven results reflected varying activity in key sectors, as a recovery in mining and commerce failed to keep pace with industry and agriculture.
"The growth of regional economic growth, consistent with the relative importance of the main activities in each region, has occurred in an unequal manner," the bank said.
Economic activity saw the strongest recovery in the southern region of the country, advancing 6.5%, the bank said.
Activity rose by 0.5% in the central west and northeastern regions of the country, but dropped by 0.3% and 0.6%, respectively, in the southeastern and northern regions of the country.
Despite the mixed results, the bank said the country's labor market continued to support a recovery in consumption. Also supporting growth was the expansion of industrial production, especially in the capital-goods sector.
The uneven resumption of growth in Brazil has come as the central bank has raised the country's benchmark Selic interest rate more than one percentage point so far this year to 8.5%, as part of an effort to curb accelerated inflation.
According to recent central bank market surveys, the country's economy is seen growing by about 2.2% this year following growth of only about 0.9% in 2012.
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