Brazil falls into recession as election looms
Published on Aug 30, 2014 10:43 AM
BRASïLIA (AFP) - Brazil, Latin America's largest economy, has slid into recession, further weakening President Dilma Rousseff who faces an increasingly tough re-election battle on Oct 5.
GDP shrank 0.6 per cent in the second quarter, Brazil's national statistics institute said on Friday, and revised its formerly positive growth estimate for the first quarter down to -0.2 per cent.
Coming ahead of October presidential and general elections, those figures will damage already low industrial and consumer confidence in what once was a fast-growing regional powerhouse.
The contraction comes with Rousseff locked in a tough fight to win another term in office, with latest polls indicating a major surge in support for Marina Silva, challenging her from the left.
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