Brazil economy contracts by 3.8 pct in 2Q

Brazil’s economy retreated by 3.8 percent year-on-year in the second quarter of 2016, according to data from the Brazilian Institute of Geography and Statistics.

In the first quarter of this year, the Brazilian economy had shrunk by 5.4 percent year-on-year.

Judged quarter-on-quarter, Brazil’s gross domestic product (GDP) contracted by 0.6 percent in the April to June period, the statistics bureau said.

Investment in Brazil rose 0.4 percent quarter-on-quarter in the April to June period, ending a losing streak that lasted for 10 straight quarters. But family consumption in the second quarter shrank by 0.7 percent said news agency Bloomberg.

Last month the Brazilian government revised upward its economic forecast for this year by 10 basis points. It now expects a 3-percent contraction, rather than the previous estimate of 3.1-percent, Agência Brasil reported. The government predicted the economy would grow 1.6 percent year-on-year in 2017, compared to its previous estimate of 1.2-percent annual expansion.