Brazil’s economy contracted more than analysts expected in May as policymakers grapple with the worst recession in decades, Bloomberg reported. The central bank said its economic activity index, a proxy for gross domestic product, fell 0.51% in May from the previous month in seasonally-adjusted terms, following a revised 0.07% increase in April. The median estimate from 30 economists surveyed by Bloomberg was for a 0.2% contraction. Acting President Michel Temer took office in May pledging to revive confidence and pull Brazil out of a recession that is extending into its second year. Brazil’s business and consumer confidence have recently rebounded and economists surveyed by the central bank expect GDP to expand in 2017.
