The economy contracted 3.6% y/y in 2016, following a similar drop in 2015, and leading to a reduction of over 7% y/y in real GDP in the last two years.
The country is in its longest recession since the 1930s. Inflation has spiked up, consumer confidence has plummeted, and corruption scandal continues to plague the economy.
Additionally, the country has been hard hit by the fall in commodity prices and an internal political crisis that has undermined investor confidence.
The weak economic performance has seen the jobless rate in Brazil increased for the third straight month to 12.6 percent in the three months to January of 2017 from 12 percent in the previous period, above market expectations of 12.4 percent.
Some analysts believe the economy should start to make a turn for the better soon.
Yvad Billings, Readers Bureau, Fellow
Edited by Jesus Chan
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