Brazil emerges from recession as GDP grows 1%

A visitor take pictures of a board at the Sao Paulo Stock Exchange (B3), in Sao Paulo, Brazil, on May 18, 2017. Brazilian financial markets plummeted on opening Thursday in the wake of a bombshell report that President Michel Temer approved paying hush money to a corrupt politician. TImage copyright
Getty Images

Image caption

Brazil’s stock market plummeted last month but on Wednesday there was good news

Brazil’s economy has grown 1% in the first three months of 2017, putting an end to the country’s longest recession in history, officials have announced.

The GDP increase came after two consecutive years of negative growth, during which the Brazilian economy shrank by almost 8%.

A record harvest of soybeans, one of Brazil’s main exports, gave the economy a boost.

But analysts warned Brazil could go back into recession in the near future.

A record 14 million people are unemployed according to official figures released earlier this week.

Uncertainty over the future of President Michel Temer has also rattled the markets.

Image copyright

Image caption

Mr Temer has been defending himself against allegations of corruption

Stock markets plummeted last month after a taped conversation was leaked in which the president seemed to discuss the payment of hush money to a jailed politician.

Mr Temer has denied the allegations, saying the tape had been “manipulated” but there have been growing calls for his resignation.

The ongoing corruption scandal has also thrown Mr Temer’s planned economic reforms into doubt.

Source link