Brazil’s economy has fallen further into its worst ever recession, contracting by 3.6 percent in 2016 and pressure is mounting on policymakers to stimulate growth.
The former Latin American powerhouse recorded a steeper-than-expected decline of 0.9 percent gross domestic product (GDP) in the final quarter of last year, intensifying the economic contraction that has imbued Brazil for eight consecutive quarters – the longest period of decline on record for the country.
Brazil’s economy is now 8 percent smaller than it was in December 2014.
The two-year slump has hit almost all economic sectors, causing unemployment to rise 12.6 percent, according to the data released Tuesday by IBGE, the agency responsible for recording Brazil’s economic figures.
Up to 12.9 million people are now unemployed in Brazil.
Brazil was once one of the world’s fastest-growing economies, positioning it as the ‘B’ in the Brics countries. However, it has long-struggled with corruption and political turmoil, and recent economic mismanagement has seen the country’s GDP slip into negative territory following the end of the commodity super cycle of 2011.
