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Brazil economy contracts in Q4 amid meltdown

Brazil economy contracts in Q4 amid meltdown

Latin America's largest economy shrank in the fourth quarter of last year compared to the previous quarter as the economic crisis gripped the world and put a halt to Brazil's business boom, the government said Tuesday.
The economy contracted 3.6 percent during from October to December compared to the third quarter, Brazil's IBGE statistics agency said.
It was the biggest decline for Brazilian gross domestic product since 1996, when a 5.1 percent drop was registered.
The economy expanded 1.3 percent in the fourth quarter compared to the same period a year ago, but that rate was much lower than the 6.8 percent increase during the third quarter.
Overall, Brazil's economy expanded 5.1 percent in 2008, but most of the gains came during first three quarters of the year as Brazil rode an unprecedented economic boom.
Economists and Brazilian business associations are predicting that the drop in business that started late last year will lead to a 2009 GDP increase of about 1.2 percent.
GDP is the measure of all goods and services produced in a country.
Brazil's Central Bank is expected to slash the nation's benchmark interest rate of 12.75 percent on Wednesday. Analysts are expecting a cut of as much as 2 percentage points.


Updated : 2021-05-08 01:55 GMT+08:00