Brazil's economy contracted slightly in the three months to June, government statistics agency IBGE said on Wednesday, stalling more than expected as a second wave of the pandemic hurt demand.
The 0.1% decline in Brazil's gross domestic product from the prior quarter was worse than the median forecast for 0.2% growth in a Reuters poll and marked a sharp slowdown from 1.2% growth in the first quarter.
Still, more government spending and services activity helped avoid a wider downturn, offsetting a drop in fixed investments and weaker agricultural output during a weak coffee harvest.by the central bank and weighing on the outlook for next year, when President Jair Bolsonaro faces an uphill battle to win re-election.
"With today's number, we think there may be a slight downward revision. Let's see," he told a congressional hearing. As vaccination rates gather steam and coronavirus cases continue to fall, the 2021 growth outlook in a weekly central bank poll of economists climbed as high as 5.3% this month before settling at 5.2% in the latest poll.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ida’s effects will linger, but not in GDP figuresRebuilding from the hurricane should mean economic growth recovers quickly, based on past storms. But disasters hit personal wealth, and in this environment could pressure wages and materials prices. The opportunity cost of disaster spending, too, cannot be measured.
Read more »
S.Korea drafts aggressive spending plan for 2022, taking debt to 50% of GDPSouth Korea's government on Tuesday unveiled an aggressive spending increase in the final annual budget of President Moon Jae-in's five-year term, pushing out any prospect of achieving balanced budgets amid a worsening fiscal deficit.
Read more »
Brazil minister warns of deeper energy crisis amid worsening droughtBrazil's Mines and Energy Minister Bento Albuquerque on Tuesday warned that the country's energy crisis was worse than previously thought, as a record drought hampers hydropower generation.
Read more »
Fossil intercepted by Brazil police turns out to be amazing flying reptileJust as it was being prepared to ship out of Brazil in an illegal smuggling operation, the remains of Tupandactylus navigans were seized by police and turned over to scientists who heralded the discovery of a nearly complete fossil.
Read more »
Brazil to hire more environmental agents in bid to fight forest firesBrazil Environment Minister Joaquim Pereira Leite said on Tuesday that the government would contract an additional 700 enforcement agents to combat destruction of the Amazon rainforest, including wildfires.
Read more »
Hostages strapped to getaway cars as robbers target banks in BrazilA gang of armed robbers in Brazil carried out a series of deadly bank heists using human shields strapped to their getaway cars on Monday.
Read more »