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Brazil seems to be climbing out of worst recession in history

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Staff Writer | May 18, 2017
Brazil is set to show a return to growth, the Central Bank indicated, raising hopes that Latin America’s biggest economy could be inching out of a two-year recession.
Brazil recession
LatAm   The Brazilian economy plunged by 3.8% in 2015
The official gross domestic product (GDP) statistic is not published until June 1 but the bank issues a preview called the economic activity index.

It showed 1.12% growth in the first quarter from the last quarter of 2016.

President Michel Temer’s government has been talking up a slow easing of the economic crisis with a return to growth this year.

“The worst is behind us but I do not want to say that it is over,” said Ignacio Crespo, an economist at Guide Investimentos in Sao Paulo.

The Brazilian economy plunged by 3.8% in 2015 and 3.6% in 2016, the worst recession on record. This year GDP should grow overall by 0.5%, the government says.

Crespo indicated agriculture would be the mainstay of that tepid recovery, “because the services sector is still very weak and industry has a long way to go.”

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