Brazil to stay in recession in 2016 – OECD

Financial Times, 9/16/2015

The recession-hit Brazilian economy is likely to continue contracting next year, according to the Organisation for Economic Cooperation and Development, which has taken a sharp axe to its GDP forecasts for the Latin American county.

The well-respected Paris-based think tank believes the Brazilian economy will shrink by a painful 2.8 per cent this year and by a further 0.7 per cent in 2016. This marks a substantial shift from the OECD’s previous forecast, published in June, which predicted that Brazil (and Russia) would record “low but positive growth in 2016”.

Brazil officially slumped into recession in the second quarter, as the economy was battered by a poisonous cocktail of high inflation, plunging consumer confidence and a corruption scandal.

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