Brazil’s economy slips into technical recession during Q2

Latest GDP data from IBGE showed that the Brazilian economy registered its worst quarterly performance since 2009 in quarter two, broadly in line with the Markit-compiled PMI data. Worryingly, the PMI suggests that this downturn extended into the third quarter. Output continues to contract across the manufacturing and service sectors, with the country’s economic malaise compounded by high interest rates, stubborn inflation and rising unemployment.