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World Bank Sees Three-Year Brazil Decline, Plunge in Venezuela

  • Venezuela worst performer in world with 10.1% contraction call
  • Latin America to suffer first back-to-back recession in 30 yrs

The World Bank forecast Brazil’s recession will extend into a third consecutive year, while Venezuela takes the world’s deepest plunge in 2016. The two will drag Latin America into back-to-back economic contractions for the first time in more than three decades.

Brazil will contract 4 percent in 2016 and 0.2 percent next year, with the 2017 outlook revised from a prior forecast for a 1.4 percent expansion. Venezuela’s economy is seen shrinking 10.1 percent this year, more than double the multilateral’s prior estimate and the worst performer among all countries tracked by the World Bank.