Home / Knowledge / News / Textiles / Brazil dives deeper into recession
Brazil dives deeper into recession
03
Jun '16
For the fifth consecutive quarter, the Brazilian economy, the largest in South America has shrunk.

According to government figures released on Wednesday Brazil's economy shrank 5.4 per cent in the first quarter of this year.

The news comes with Brazil only two months away from hosting the Olympics in Rio de Janeiro amidst a massive political turmoil.

In May, President Dilma Rousseff was temporarily suspended by a congressional impeachment vote. Her vice president, Michel Temer, has taken over as interim president.

Production fell in all the three main economic sectors: agriculture, industry and services.

Exports were a rare bright spot, increasing by 6.5 per cent compared with the fourth quarter after a sharp fall in the value of the real. Brazil is a major supplier of cotton and petrochemicals.

Experts had forecast Brazil's economy to shrink more than it did. The better-than-expected number reflected a last ditch effort by Rousseff to win over public support by increasing government spending in April prior to the vote.

Brazil is in its longest recession since the 1930s. Inflation has spiked up, consumer confidence has plummeted and a massive corruption scandal continues to engulf public officials two years since it first began.

Unemployment in Brazil had shot up to 11.2 per cent in the period between April and February. There are 11.4 million unemployed Brazilians, up nearly 20 per cent from a year ago.

Brazil's recession began at the beginning of 2015 as prices of commodities -- its main engine of growth -- crashed, and the corruption scandal at the state-run oil company, Petrobras, engulfed politicians of all stripes and many business owners.

Brazil's central bank estimated in March that the economy would shrink 3.5 per cent this year. Last year, Brazil's economy contracted by 3.8 per cent.

According to the Organisation for Economic Cooperation and Development (OECD), the Brazilian economy is expected to contract by 4.3 per cent this year. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

UK Govt, fashion retailers sign agreement to fight slavery

Fashion | On 17th Nov 2018

UK Govt, fashion retailers sign agreement to fight slavery

John Lewis, M&S, New Look, NEXT, River Island and Shop Direct...

CNTAC delegation from China visits Pakistan

Textiles | On 17th Nov 2018

CNTAC delegation from China visits Pakistan

Chinese investors have expressed a desire to enter into joint...

Odisha to set up three textile parks

Textiles | On 17th Nov 2018

Odisha to set up three textile parks

Around 17 firms have expressed interest to invest to the tune of ₹589 ...

Interviews View All

Manfred Mentges, Sedo Treepoint GmbH

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Top executives, Retailers

Top executives
Retailers

Weak rupee breeds inflation

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Vikas Banduke,

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Carolin Russ,

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search