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.