The Economic Activity Index (IBC-Br), released by the Central Bank of Brazil (BC) this Wednesday (17), showed an expansion of 0.5% in April, compared to the previous month. The calculation is made after seasonal adjustment — that is, a way of comparing different periods. The result represents an improvement compared to March, when there was a 0.2% drop in the indicator. It was the biggest increase since February, when an increase of 0.6% was recorded. See below the performance sector by sector in April: agriculture: stability; industry: increase of 0.4%; services: growth of 0.3%. Also according to the Central Bank, the IBC-Br showed growth of 0.9% compared to the same month last year. Over the course of the year, the indicator increased by 1.3% and, in the 12 months up to April, it increased by 1.6%. In these cases, the index was calculated without seasonal adjustment. ➡️GDP is the sum of all goods and services produced in the country and serves to measure the evolution of the economy. The official result, measured by the Brazilian Institute of Geography and Statistics (IBGE), has a different methodology (see below in this report). ➡️If GDP grows, it means that the economy is doing well and producing more. If GDP falls, it means the economy is shrinking. In other words, consumption and total investment is lower. However, GDP growth does not always equate to social well-being. Slowing down of activity The slowdown in economic activity in 2025 and, throughout this year, is something expected by both the financial market and the Central Bank, given the high level of interest rates. Set by the Central Bank to contain inflationary pressures, the Selic rate is currently at 14.5% per year — still a high level — despite the recent reduction. The financial market estimates a GDP growth rate of 1.96% in 2026, with a further slowdown compared to last year, when the economy grew 2.3%. ▶️The BC has clearly said that a slowdown, that is, a slower rate of economic growth, is part of the strategy to contain inflation in the country. He assesses that this is a "necessary element for the convergence of inflation to the target (inflation of 3%)". ▶️In the minutes of the last Copom meeting, held at the end of April, the BC reported that the so-called "product gap" remains positive. This means that the economy continues to operate above its growth potential without putting pressure on inflation. GDP x IBC-Br The IBC-Br results are considered the "preview of GDP". However, the Central Bank's calculation is different from the IBGE calculation. The BC indicator incorporates estimates for agriculture, industry and the services sector, in addition to taxes, but does not consider the demand side (incorporated in the IBGE GDP calculation). The IBC-Br is one of the tools used by the BC to define the country's basic interest rate. With greater economic growth, for example, there may be more inflationary pressure, which would help to contain the fall in interest rates.