Economics
Brazil to Post Third Straight GDP Drop as Domestic Demand Wilts
- Recession and political gridlock have torpedoed confidence
- Falling investment is main driver behind shrinking economy
People walk past a blanket store in Sao Paulo.
Photographer: Paulo Fridman/BloombergThis article is for subscribers only.
Latin America’s largest economy probably shrank for a third consecutive quarter, as rising unemployment and higher inflation sapped domestic demand, pulling the nation deeper into recession.
Gross domestic product contracted 1.2 percent in the three months ended in September, according to the median estimate of 32 economists surveyed by Bloomberg. That would mark the first three-quarter contraction since Brazil’s statistics institute began releasing data for the series in 1996. The institute will publish its GDP report at 9:00 a.m. Tuesday.