-------------------------------------------------------------------------- The GDP for Brazil economic release has been updated. -------------------------------------------------------------------------- GDP for Brazil (-1.4%)
The Brazilian economy sank deeper into recession during the second quarter. According to IBGE, the Brazilian statistical agency, real GDP contracted by 1.6% during the second quarter from the previous quarter on a seasonally adjusted basis. Private domestic demand was very weak as high interest rates clobbered household and business spending. The foreign sector contributed to growth as exports posted a sizable increase, and imports, reflecting soft domestic demand, contracted during the quarter. The third quarter also looks to be soft.