Brazil’s economy tailspin seen at record speed in third quarter

Brazil’s economy probably shrank at the fastest annual pace on record in the third quarter, crippled by a combination of government budget cuts, rising inflation and political gridlock, a Reuters poll showed on Thursday.

Gross domestic product in Latin America’s largest economy likely contracted 1.2 percent in the third quarter from the second BRGDP=ECI after seasonal adjustments, following a decline of 1.9 percent between April and June, according to the median forecast of 33 economists in the survey.

On an annual basis, Brazil’s GDP probably dropped 4.1 percent in the third quarter BRGDPY=ECI, the steepest decline since the beginning of the current data series in 1996.
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