MercoPress, en Español

Montevideo, March 25th 2019 - 20:20 UTC

Brazilian economy contracts a record 4.5% in the last twelve months

Wednesday, December 2nd 2015 - 10:45 UTC
Full article 78 comments
GDP contracted by 3.2% between Jan and Sept, and has decreased in three consecutive quarters, reaching the forecast contraction for the full year 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.

Categories: Energy & Oil, Politics, Brazil.

Top Comments

Disclaimer & comment rules
  • The Voice

    Olympics should perk things up a bit.

    Dec 02nd, 2015 - 11:44 am 0
  • Captain Poppy

    Brassole de Tobi:

    all part of the plan? self immolation?

    Dec 02nd, 2015 - 11:48 am 0
  • yankeeboy

    1. It didn't do much for Greece and the hangover was more than they could bear.

    This 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?

    Dec 02nd, 2015 - 02:52 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!