Collapses the GDP of Brazil, with a loss the likes of which have not been recorded for twenty years: the 3,8% lost in 2015 compared to the previous year is in fact, in percentage terms, a drop in line with that of 1996. To find a worse trend, one must even go back until 1990, when Brasilia slipped by 4,3%. This was indicated by the Brazilian Institute of Geography and Statistics Ibge: in the fourth quarter of last year alone, the gross domestic product fell by 1,4% compared to the previous quarter, and by 5,9% on an annual basis.
The picture doesn't even seem destined to improve much, given that for this year the International Monetary Fund forecasts a further -3,5% of GDP. Facts of which the major agencies have already taken note rating, which in recent times have heavily cut the assessment of the South American economy: the last one was Moody's, which, just like Fitch and Standard & Poor's had previously done, brought Brazil's score to a "junk" level, removing the investment grade. “Low economic growth, worsening debt and difficult political dynamics” are the aspects that concern the markets the most.
The former South American locomotive is also struggling with ainflation at 10,7%, and was very severely affected by the plunge in commodity prices and the slowdown in Chinese demand, as well as currency instability and capital flight which have affected a large part of emerging economies over the past two years. To these factors must also be added thecorruption emergency, culminating in the Petrobras scandal, which severely undermined the credibility of Dilma Rousseff's government. He also communicated that the industrial sector (-6,4% of output) and the mining sector (-6,6%) are leading the decline.
