Brazil Slips Into Recession as Post-Pandemic Recovery Cut Short
- GDP shrank 0.1% q/q in 3Q, versus estimate of no growth
- Swap rates plunge as traders see a less hawkish central bank
Coffee plants destroyed by frost during extremely low temperatures near Caconde, Sao Paulo state, Brazil, on Wednesday, Aug. 25, 2021.
Photographer: Jonne Roriz/BloombergThis article is for subscribers only.
Brazil’s economy fell into recession as extreme weather conditions, high interest rates and inflation cut short its recovery from the pandemic, dealing a blow to President Jair Bolsonaro just as he prepares for his re-election campaign.
Gross domestic product fell 0.1% in the July-September period after posting a revised decline of 0.4% in the second quarter. From a year ago, the economy expanded 4%, the national statistics agency said on Thursday.