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BRAZIL'S ECONOMY FALLS INTO RECESSION
Aruba, August 29, 2014 - Brazil has fallen into recession, just a month before the general election, latest figures show.
 
Economic output, GDP, fell by 0.6% in the three months to June, worse than analysts had predicted, and revised figures for the first quarter of the year also showed a fall of 0.2%.
 
A recession is usually defined as two consecutive quarters of contraction.
The news will be damaging for the government of President Dilma Rousseff.
 
According to the most recent poll, Ms Rousseff would lose to a rival candidate, environmentalist Marina Silva, if October's election went to a second round.
 
The World Cup, held in June and July, failed to lift Brazil's economic output. It was not regarded as generally good for business, says the BBC's Wyre Davies in Rio de Janeiro. 
"There were more days off for employees and many traditional tourists stayed away," he says.
 
"The problem is that, with elections due in early October, the economy is increasingly seen as President Dilma Rousseff's weak point." This recession shows the exhaustion of a growth model that has been centred on internal consumption.
 
 

By orbitalnets.com