Brazilian economy sinks further into recession in second quarter

The Brazilian economy, the largest in Latin America, shrank by 0.6 percent quarter on quarter, according to official statistics released on Wednesday.

This is a steeper drop compared with the 0.4 percent quarter-on-quarter decline recorded in the first quarter, according to statistics released by the federal Brazilian Institute for Geography and Statistics (IBGE).

On a year-on-year basis, the Brazilian economy shrank by 3.8 percent in the second quarter, the ninth consecutive quarter of contraction.

The worst hit sectors included agriculture and services.

However, the second quarter saw investments rise for the first time in years after ten successive quarters of contraction.

Exports grew by 0.4 percent quarter on quarter, partly boosted by changes in the value of the U.S. dollar against the real, while imports rose 4.5 percent. Exports grew by 4.3 percent year on year, but imports tumbled by 10.6 percent due to fluctuating exchange rates.

Source : XINHUA