Brazil economy shrinks less than expected in Q1Staff writer ▼ | June 3, 2016
Brazil's economy remained stuck in a severe recession during the first three months of the year, shrinking for the fifth straight quarter, though the pace of contraction slowed, preliminary data from the statistical office IBGE showed.
LatAm Gross domestic product declined 0.3 percent in Brazil
On a year-on-year basis, GDP decreased 5.4 percent in the first quarter after a 5.9 percent decline in the previous three months. Economists had expected a 5.9 percent contraction.
After accumulating for four quarters, GDP decreased 4.7 percent in the first quarter. Economists had forecast a 4.8 percent slump.
Compared to the previous quarter, farm output decreased 0.3 percent, industrial production fell 1.2 percent and services revealed a 0.2 percent decline.
The Brazilian economy is mired in the most severe recession it has seen in several decades. Political troubles makes it difficult for the interim government to tackle the crisis effectively. ■