Brazil’s GDP decreased 0.8 percent in Q3Staff 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).
LatAm Conditions are more serious than they seemed
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. ■