Brazil’s worst recession

Brazil faces the worst recession since 1930s, hit by end of commodities boom, and fiscal contraction and corruption scandals. Brazil’s GDP fell by a record 4.5 per cent year on year in the third quarter, as lower commodity prices and failing consumer credit boom have battered the world’s fastest growing economies.

According to IBGE Brazil’s statistics agency,  the GDP in the three months to September fell 1.7 per cent against a revised second quarter, much worse than analyst expectations. The unemployment rose to 7.9 per cent in September from 4.7 per cent in October last year. Inflation is running more than 10 per cent for the first time since 2002 and Brazil’s government budget deficit is 9.5 per cent of GDP.