Brazil’s economy will shrink 2.95% this year versus a prior estimate of a 2.81% contraction according to the weekly central bank poll of about 100 economists. The last time Brazil had back-to-back years of recession was 1930 and 1931, and the country has never had one as deep as that forecast for 2015 and 2016 combined, according to data from the Institute for Applied Economic Research (Ipea) that dates all the way back to 1901.
In addition, consumer confidence as measured by the Getulio Vargas Foundation in December reached a record low while business confidence as measured by the National Confederation of Industry fell throughout most of last year, rebounding slightly from a record low in October. Brazil’s policy makers are also struggling to control the fastest inflation in 12 years without further hamstringing the country’s weak economy.
To read the whole article, Brazil Heads for Worst Recession Since 1901, Economists Forecast, go to the website of Bloomberg. In addition, visit our Brazil ETF list page.
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