MercoPress. South Atlantic News Agency
Brazilian economy contracts a record 4.5% in the last twelve months
GDP contracted by 3.2% between Jan and Sept, and has decreased in three consecutive quarters, reaching the forecast contraction for the full year Brazil's economy, in recession since mid-year, contracted 1.7% in the third quarter, compared to the April-June period, and decreased 4.5% relative to the same period in 2014, the Brazilian Institute of Geography and Statistics, or IBGE, said on Tuesday.
The gross domestic product (GDP) contracted by 3.2% between January and September, and has decreased in three consecutive quarters, already reaching the rate of contraction that analysts had forecast for all of 2015, the IBGE said.
Analysts expect Brazil's economy to contract by 3.19% this year.
Brazil's economy is headed for its worst economic performance since 1990, when it contracted by 4.35%.
The drop in GDP in the third quarter was led by a 1.5% fall in consumer spending, which had been one of the main engines of Brazil's economy for years, the IBGE said.
Household spending has been affected by inflation approaching double digits, reduced lending, a drop in consumer confidence and rising interest rates.
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Read all commentsOlympics should perk things up a bit.
Dec 02nd, 2015 - 11:44 am 0Brassole de Tobi:
Dec 02nd, 2015 - 11:48 am 0all part of the plan? self immolation?
1. It didn't do much for Greece and the hangover was more than they could bear.
Dec 02nd, 2015 - 02:52 pm 0This is the beginning of a decade long retrenching.
Until they get rid of the free $ for poor people they'll never be able to restart.
When will poor people learn you can't get something for nothing?
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