Brazil’s economy recorded a record 9.7% this quarter compared to the era of the last three months amid the coronavirus pandemic, the National Institute of Statistics reported Tuesday.
This was the time of the consecutive quarter of decline in the country’s gross domestic product, which is considered a recession.
The decline between April and June, the biggest quarterly decline since 1996, however, some economists and the president of brazil’s Central Bank speculated a few weeks ago that the decline could be higher, even to 11%.
“The smart component of the news is that, the decline is very significant, it allows us to see the probability of a rebound in the next quarter,” said Gilberto Braga, an economist and professor at Ibmec, a Brazilian university for personal studies.
Braga said trends imply that Brazil could grow around 0.5% in the third quarter.
Brazil has shown more than 3.9 million coronavirus infections, with 121,000 deaths.President Jair Bolsonaro has consistently argued that the economic effect on closures and other measures during the pandemic would be more damaging to Brazil than Covid-19 himself.
The financial sector surveyed through brazil’s Central Bank projected on Monday that the economy would contract by 5.28% by the 2020 total, a more favorable outlook than a month earlier, when they forecast a 6.5% decline.
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