Brazil's Economy Remains Trapped in Recession

Brazil remains trapped in recession after its economy again experienced negative growth (contraction) of 2.5 percent in the fourth quarter of 2016 compared to the same quarter of the previous year (YoY). This is the eleventh contraction since the second quarter of 2014. The deepest contraction occurred in the fourth quarter of 2015, reaching 5.8 percent.

TradingEconomics predicts that the Brazilian economy will still contract by 1.9 percent in the first quarter of 2017. Similarly, in the second quarter, it will contract by 0.2 percent. The still unstable economy, the unconducive political climate, and rampant corruption will continue to burden the Brazilian economy.

Brazil's Gross Domestic Product (GDP) has experienced negative growth over the past two years. In 2016, the Samba Nation's economy contracted by 3.58 percent. Similarly, 2015 also recorded negative growth of 3.76 percent. The fall in global crude oil prices since mid-2014, dragging down other commodities such as soybeans and metals, triggered the recession in Brazil. Unemployment reached 12.6 percent, meaning about 13 million people are unemployed.