BRASÍLIA: Brazil’s economy contracted more than analysts expected in May as policy makers grapple with the worst recession in decades. The central bank said its economic activity index, a proxy for gross domestic product, fell 0.51 percent in May from the previous month in seasonally-adjusted terms, following a revised 0.07 percent increase in April. The median estimate from 30 economists surveyed by Bloomberg was for a 0.2 percent contraction.
Acting President Michel Temer took office in May pledging to revive confidence and pull Brazil out of a recession that is extending into its second year. His administration is promoting measures in Congress that would shore up fiscal accounts and attract foreign investment to industries such as airlines and oil extraction. Brazil’s business and consumer confidence have recently rebounded and economists surveyed by the central bank expect GDP to expand in 2017.
