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Author Topic: Brazil's economy enters recession  (Read 380 times)

hubag bohol

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Brazil's economy enters recession
« on: August 31, 2015, 05:34:22 PM »

28 August 2015
 




Brazil has entered recession after official figures showed the country's economy contracted by 1.9% between April and June compared with the previous three months.

Analysts had expected a contraction, but the number was worse than expected.

First quarter output was also revised down to show a 0.7%, rather than a 0.2%, contraction.

The country, the seventh-largest economy in the world, has seen economic growth fall sharply in recent times.

This is due in part to low commodity prices and sluggish global growth.

High interest rates - currently 14.25% - have also affected consumer spending, an important element of Brazil's economy, while this year, the government has introduced stringent austerity measures designed to tackle high levels of debt.

Government spending, including on unemployment benefits, has fallen sharply, while taxes have risen.

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