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Brazil’s GDP decreased 0.8 percent in Q3

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Staff Writer | December 1, 2016
Brazil’s GDP shrank by 0.8% in Q3 from Q2 as per seasonally adjusted figures, according to the Brazilian Institute of Geography and Statistics (IBGE).
Brazil workers
LatAm   Conditions are more serious than they seemed
In Q3 from Q3 2015, GDP was down 2.9%, in the tenth straight year-on-year quarterly contraction.

Over the past four quarters, GDP shrank by 4.4% from the immediately preceding period.

Year-to-date through September, the Brazilian GDP was 4% smaller than in the comparable period of 2015, in the sharpest downturn for the period at hand since 1996, according to IBGE.

The Brazilian Ministry of Finance said in a statement that the main reason for the 0.8% contraction was high corporate indebtedness levels, which causes investment to slow down.

“The scenario stemmed from conditions predating the government’s new economic agenda, and those conditions proved more serious than they seemed at first,” the statement reads.