VIRUS TUMBLES BRAZIL INTO RECESSION WITH RECORD 9.7% DROP
On Tuesday, the official statistics agency said Brazil’s economy, the biggest in Latin America, contracted by a record 9.7 percent in the second quarter of 2020, plunging into recession as coronavirus lockdowns hit home.
The drop was larger than economists had forecast by about half a percentage point.
But it was smaller than feared at the height of the economic shut-down, and also smaller than the contractions in many other countries hit hard by the virus, including Britain, France, Spain, Mexico, and Chile.
Brazil has been hit hard by the pandemic, with the second-highest number of infections and deaths worldwide after the United States, and stay-at-home measures to contain the virus have taken a heavy toll.
“GDP is now at the same level as of late 2009, at the height of the global financial crisis,” the Brazilian Institute of Geography and Statistics (IBGE) said in a statement.