Brazil entered longest recession since 1930s

The world’s seventh largest economy Brazil’s economy shrank 4.5 percent year-on-year in the third quarter that is sharper than expected recession and its GDP shrank 1.7 percent from the previous quarter.

Reason:

• Primary reasons for recession are constant global economic slowdown, shrinkage in exports and unprecedented scandal at the government-run oil company Petrobras.
• All these reasons together have had impact on economy in the country and thus diminishing economy.

Unemployment  rate:8.9 percent during July-September 2015 higher from 6.8 percent in 2014-15.

Household spending: Cut down by 4.5 percent during July-September 2015.Real, Brazil’s currency down about 31 percent against the dollar.

Inflation: 10 percent which is the highest in 12 years

Key points: Brazil

• Capital & currency: Brasilia, Real
• President: DilmaRousseff