Latin America’s largest economy probably shrank for a third consecutive quarter, as rising unemployment and higher inflation sapped domestic demand, pulling the nation deeper into recession.
Gross domestic product contracted 1.2 percent in the three months ended in September, according to the median estimate of 32 economists surveyed by Bloomberg. That would mark the first three-quarter contraction since Brazil’s statistics institute began releasing data for the series in 1996. The institute will publish its GDP report at 9:00 a.m. Tuesday.
A sprawling corruption investigation has caused political gridlock in Brasilia, delaying President Dilma Rousseff’s efforts to pass measures to fortify fiscal accounts and revive confidence. As the budget deficit has swelled, boosting threats of further sovereign downgrades to junk, the government Monday was forced to impose a partial shutdown, freezing discretionary spending. Meanwhile, the central bank has boosted borrowing costs to the highest since 2006, depressing demand and boosting unemployment, while failing to tame double-digit inflation.
Brazil Energy Insight 
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