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Brazil Economy Nears Bottom After Shrinking for Six Quarters

  • Gross domestic product contracted 0.6% in second quarter
  • ‘Brazil edging toward a recovery,’ says PNC Bank economist
Updated on

Brazil’s worst recession on record is nearing its end as Latin America’s largest economy shrank only slightly more than expected in the second quarter and investment rebounded.

Brazil’s gross domestic product contracted 0.6 percent in the three months ended in June, its sixth straight quarter of contraction, after a revised 0.4 percent drop in the previous period, the national statistics institute said Wednesday. The figure was worse than the median estimate for a 0.5 percent decline from 46 economists surveyed by Bloomberg. From a year earlier, GDP shrank 3.8 percent after a 5.4 percent drop in the previous quarter.