BBC News Latin America is reporting that Brazil has fallen into a recession just one month before the general election. This information does not bode well for Brazilian President Dilma Rousseff who is trailing in the polls to newcomer Marina Silva, who is an environmentalist. Further, the World Cup is also being viewed as a business failure because of the drain on the economy and the lack of participation from “traditional” tourists.
The author reports:
“Economic output, GDP, fell by 0.6% in the three months to June, worse than analysts had predicted, and revised figures for the first quarter of the year also showed a fall of 0.2%. A recession is usually defined as two consecutive quarters of contraction. The news will be damaging for the government of President Dilma Rousseff.”
Rousseff, who is respected in many regards, is considered “weak on the economy.” The 2nd quarter GDP data also showed that civil construction, manufacturing and investment declined significantly during the second quarter.
Read more at BBC News.