Brazil entered longest recession since 1930s
Primary reasons for recession in Brazil are global economic slowdown, shrinkage in exports, and scandal at the government-run oil company Petrobras.
Brazil’s economy contracted by 1.7 percent during July-September 2015 compared to April-June period in 2015. An announcement in this regard was made by the government on 1 December 2015.
It was Brazil's third consecutive quarter of contraction starting from January 2015 and thus, making it the country's longest recession since the 1930s.
Key facts related to Brazil’s economy
• Inflation rose to over 10 percent, the highest in 12 years, in October 2015.
• Unemployment rate was pegged at 8.9 percent during July-September 2015 up from 6.8 percent in 2014-15.
• Due to lower earnings, household spending fell by 4.5 percent during July-September 2015.
• Real, Brazil's currency was down about 31 percent against the dollar between January-November 2015.
• Bovespa, Brazil's main stock index, has been decelerated by about 27 percent since September 2014.
• Foreign and domestic investments in Brazil have declined for nine straight quarters.
Why Brazil is in recession?
Primary reasons for recession in Brazil are multiple. They range from continuing global economic slowdown, shrinkage in exports and unprecedented scandal at the government-run oil company Petrobras.
All these factors together have had impact on business climate in the country and thereby dwindling economic activity.
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