Brazil GDP Shrinks for 4th Straight Quarter

The Brazilian economy contracted 1.4 percent on quarter in the last three months of 2015, slightly lower than market expectations of a 1.5 percent decline and following a 1.7 percent contraction in the previous period. It is the fourth straight quarter of contraction as companies have been cutting investment plans since the second quarter of 2014 and in 2015 around 1.5 million people lost their job.

Gross fixed capital formation recorded the biggest decline (-4.9 percent), following a 4.4 percent drop in the previous period. Household consumption slumped 1.3 percent (-1.5 percent in Q3), government spending went down 2.9 percent after rising a meager 0.3 percent in the previous period. Exports contracted for the second straight period (down 0.4 percent) and imports slumped 5.9 percent.

On the production side, the mining sector fell 6.6 percent, manufacturing went down 2.5 percent and retail trade declined 2.6 percent. In contrast, agriculture expanded 2.9 percent, electricity, water and sewerage increased 1.7 percent  and construction edged up 0.4 percent. 

Year-on-year, the GDP shrank 5.9 percent, bringing full 2015 contraction -3.8 percent, the worst annual performance since 1991.

Brazil GDP Shrinks for 4th Straight Quarter

Joana Taborda |
3/3/2016 1:07:50 PM