Brazil Falls Deeper into Recession

Brazil’s economy shrank by 1.7% in the third quarter of the year compared with the second quarter, deepening the country’s worst recession in 25 years.

Compared with a year ago, the economy is 4.5% smaller.

The country’s unpopular President, Dilma Rousseff, has been trying to cut spending and raise taxes and this new fall in economic activity will make the latter harder.

Her government is also entangled in a massive corruption scandal.

The drop in economic activity was largely due to a drop in investment, which fell by 15% compared with a year ago.

That has been falling for nine quarters in a row.

Unemployment is at a six-year high and inflation is running at 10%, meaning household spending is being squeezed.

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.