Brasília (AFP) – Brazil is in recession after Latin America’s largest economy contracted during two successive quarters, the National Statistical Institute (IGBE) reported Friday.
The IGBE said the GDP shrank 0.6 percent in the second quarter, and 0.2 percent in the first quarter, which it revised down from 0.2 percent growth.
Coming just weeks before October 5 presidential and general elections, the figures are another knock to already low industrial and consumer confidence in what once was a rapidly growing, regional powerhouse.
Declining GDP in two consecutive quarters is the technical definition of a recession.
The second quarter decline was steeper than the 0.4 percent predicted by a cross-section of leading economists.
Year on year, GDP shrank 0.9 percent.
Contributing to the poor performance was a 0.3 percent drop in household spending.