Coronavirus Tips Brazil Into Recession

Brazil’s economy has officially entered a recession following the swingeing impact of the coronavirus crisis, which has so far killed more than 120,000 Brazilians and pushed millions into unemployment, the Financial Times reported. According to the Brazilian Institute of Geography and Statistics, gross domestic product shrank 9.7 per cent quarter-on-quarter, reflecting the effect of widespread economic shutdowns, which have hammered consumption and investment and triggered a wave of corporate bankruptcies. Compared with the same quarter last year, GDP was 11.4 per cent lower. The record fall in the second quarter is greater than the total loss in any of nine recessions that have struck Brazil in the past 40 years, analysts said. The official data released on Tuesday comes amid growing concern for the direction of economic policymaking in Latin America’s largest country, with Paulo Guedes, finance minister, increasingly isolated in a cabinet that wants to spend its way out of the crisis. Read more