Economics
Brazil Outlook Dims With GDP Miss, End to ‘Colossal’ Spending
- 3Q GDP +7.7% q/q and -3.9% y/y, statistics agency says
- Bolsonaro said government won’t extend monthly stipends
People wearing protective masks walk past partially opened businesses in downtown Rio de Janeiro, Brazil.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Brazil’s economic growth fell short of market expectations in the third quarter, and that was largely before a new jump in Covid-19 cases and a reduction in emergency aid started to pour cold water on the recovery.
Latin America’s largest economy surged 7.7% from the previous quarter, the most in government data going back to 1996, but still less than the 8.7% expected by analysts. The figure, which follows the largest contraction on record between April and June, captures the impact of unprecedented emergency spending that set Brazil apart from its peers.