Brazilian economy falls by 9.7% in second quarter
The decrease in the April-June period was the largest quarterly drop since 1996.
Brazil’s economy contracted a record 9.7% in the second quarter from the previous three-month period amid the coronavirus pandemic, the national statistics institute reported Tuesday.It was the second consecutive quarter of a decline in the country’s gross domestic product, which is widely considered to be a recession.
The decrease in the April-June period was the largest quarterly drop since 1996. However, some economists and the president of the Central Bank of Brazil speculated weeks ago that the fall could be greater, even up to 11%.
“The good part of the news is that although the fall is very large, it allows us to see possibilities of a rebound in the next quarter,” said Gilberto Braga, an economist and professor at Ibmec, a private Brazilian research university.Braga said trends indicate Brazil could see growth of around 0.5% in the third quarter.