Tuesday, 7 March 2017

Brazil's recession worst on record

Brazil has been in recession for two years, the latest figures show, marking the deepest economic decline since records began.

The economy contracted by 3.6% in 2016, meaning it is now 8% smaller than it was in December 2014.

The country has been hard hit by the fall in commodity prices and an internal political crisis that has undermined investor confidence.

However, analysts believe the economy should start to pick up from here.

The two-year slump has seen the number of unemployed rise by 76% to 12.9 million, a rate of 12.6%.
Brazil was once one of the fastest-growing economies in the world, the 'B' in the Brics group of nations regarded by many investors are having the world's best growth potential.

Its key exports - including oil, soy and metals, were in hot demand.

But as growth in the biggest element of that grouping, China, began to slow so did demand for commodities and their prices.

Another drag factor has been corruption, which has engulfed Brazilian society at the highest levels, seeing off its President, Dilma Rousseff for illegally manipulating government accounts, and involving some of the country's biggest and best-known companies.

BBC    News.