Brazil's recession worst on record

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Brazil has been in slump for two years, the latest figures show, marking the deepest economic go down since records began.

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

The country has been hard hit by the go to pieces in commodity prices and an internal political crisis that has undermined investor self-reliance.

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

The two-year tailspin has seen the number of unemployed rise by 76% to 12.9 million, a calculate of 12.6%.

Brazil was once one of the fastest-growing economies in the world, the ‘B’ in the Brics group of states regarded by many investors are having the world’s best growth possibility.

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

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

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


Interpretation, Daniel Gallas, South America business correspondent

Twenty-four consecutive months of unresponsive growth is a social disaster for an emerging country like Brazil.

The add up of unemployed people increased to 12 million people over a sharp period of time. It is as if the entire population of a country like Greece or Portugal were now looking for works and not finding anything.

But there are some signs that this depression may be soon over.

Brazil’s monthly inflation rates suggest bounties in the economy are stabilising, and interest rates are falling at a faster pace than wait for. This could fuel consumption and investment and speed up the country’s redemption.

Also there could be tailwinds from the global economy, with sacrifices of commodities on the rise again and possible growth coming from the US.

But much of Brazil’s retaking still depend on whether government reforms in public spending are prospering.


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