World Economy

Brazil Growth Shrinks Further

Brazil Growth Shrinks FurtherBrazil Growth Shrinks Further

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.