The Brazilian government's stimulus measures have had a limited impact on Latin America's largest economy, the central bank said Friday.

The Index of Economic Activity, or IBC, rose 0.42 percent in July, compared with an increase of 0.61 percent the previous month, according to the latest statistics.

The IBC posted a gain of 1.24 percent in the first six months of 2012, the central bank said, a figure consistent with analysts' projections that the Brazilian economy will expand by around 1.6 percent this year.

Finance Minister Guido Mantega acknowledged that global economic woes are hurting Brazil and the government, which initially called for 4 percent growth in 2012, now forecasts an expansion of 2 percent.

After a sharp - but fairly brief - downturn spurred by the world financial crisis in September 2008, the Brazilian economy enjoyed robust growth of 7.5 percent in 2010 before slowing last year to 2.7 percent.

The central bank's IBC report comes a day after Mantega announced the government's reduced growth forecast for 2012 and touted a new batch of tax breaks tailored to help agriculture, the pharmaceuticals industry, appliance manufactures and other economic sectors.

President Dilma Rousseff's administration previously rolled out other measures to spur the economy, such as slashing electric rates by around 20 percent, while the central bank has steadily reduced Brazil's traditionally high interest rates. EFE