Brazil’s economy slumped by 3.8% in 2015, its biggest drop in 25 years – Yahoo Finance Spain

The Brazilian economy, the seventh in the world, shrank by 3.8% in 2015, its worst result in 25 years, which places its deepest recession in a century.

the decline in GDP of the main Latin American economy is the largest of the current historical series, initiated in 1996, and also the most important since 1990, when it was in effect another series and economy shrank by 4.3%, said Thursday the Brazilian Institute of Geography and Statistics (IBGE, official).

Brazil thus obtains the second worst performance of all Latin America in 2015, only behind Venezuela, and also the worst among its partners in the club of emerging powers, BRICS (including Brazil, China, Russia, South Africa, India)

-. political factors –

After a spectacular growth of 7 , 5% in 2010, hand boom in prices of raw materials and social programs that brought poverty to 30 million Brazilians and encouraged consumption, GDP grew 3.9% in 2011; 1.9% in 2012; 3% in 2013 and just 0.1% in 2014.

The collapse of prices ‘commodities’ by the slowdown in China and megaescándalos corruption and the political crisis shaking the Government of Dilma Rousseff froze the economy

“the economic recession is caused by that economic and political factors. the, the impasse between the executive and legislative branches, corruption, political crisis all that is undermining confidence the business community, consultants and is crippling business and the Brazilian economy, “he told AFP Margarida Gutiérrez, professor of Macroeconomics at the Federal University of Rio de Janeiro (UFRJ).

” You never saw in the Brazilian economy a fall of this magnitude for two consecutive years (…) this year will be worse than last year, it is expected that from 2017 or 2018 may be a positive growth rate, but more by inertia ” he said.

the GDP in 2015 was affected by the fall of 6.2% in Brazilian industry, the worst annual result of the series started in 1996, the contraction of 14.1% . of investments, 4% of household consumption, 2.7% of services and growth of just 1.8% in the agricultural sector

– the worst recession in a century ? –

After the contraction of 3.8% in 2015, the market forecasts a decline in GDP of 3.45% in 2016 and the IMF anticipates a stagnation 2017. If these figures are confirmed, it would be the worst economic downturn in the country in a century.

“Brazil never passed a level of uncertainty so high and that freezes everything. No consumption or investment or loans with this level of uncertainty, which is historical” said Daniel Cunha, an analyst with XP Investimentos in Sao Paulo.

“We work with the scenario that there will be a drop in the economy of the order of 4.3% in 2016. there is a possibility that 2015 is no it was the worst year, “he said

Rousseff a exguerrillera left, faces a complex cocktail of contraction in activity, fiscal deficit, inflation in double digits and rising unemployment.

<. p > its popularity is at just 11%, the opposition calls for his ouster, the highest electoral court investigation for illegal financing of his campaign for re-election and Congress takes to pass a crucial austerity plan.

to all this a megaescándalo of corruption uncovered in state oil company Petrobras, which has hit the economy and taken to jail to big businessmen, bankers and figures of the ruling Workers Party (PT) and allied parties adds.

Brazil’s GDP fell 1.4% in the fourth quarter of last year compared to last. In the first quarter of 2015, the contraction was 0.8% in the second and 2.1% in the third of 1.7%, always in relation to the previous quarters.

collapse of the economy in the 4th quarter of 2015 was 5.9% compared to the same period of 2014

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