Brazil’s economy goes into recession

RIO DE JANEIRO (AFP) – Brazil’s economy, the largest in Latin America, slid into recession in the third quarter of the year as agricultural production dropped, the government said yesterday.

Gross domestic product (GDP) declined 0.1 per cent for the second straight quarterly fall, the government statistics agency IBGE said.

The drop in the second quarter was revised to a larger 0.4 per cent from the initial estimate of 0.1 per cent compared to the previous three months. In comparison to the third quarter of 2020, the economy grew four per cent, the agency said.

Farm production fell eight per cent in the third quarter, while manufacturing was flat and the services sector grew 1.1 per cent, the agency said.

Brazil’s GDP slowdown in the second quarter ended the recovery it had started in late 2020 after the collapse it suffered due to the Covid-19 pandemic.

People walking through a park in Rio de Janeiro. PHOTO: AFP