Brazil Finance Ministry Says 2017 GDP to Be Lower Than Expected
November 21 2016 - 3:25PM
Dow Jones News
By Marla Dickerson and Luciana Magalhaes
SÃO PAULO -- The Brazilian government on Monday reduced its 2017
annual GDP forecast to 1.0% from 1.6%, a sign that Latin America's
largest economy is struggling to rebound from a brutal
recession.
Fabio Kanczuk, secretary of economic policy for Brazil's Finance
Ministry, made the announcement at a press conference in
Brasília.
Low oil prices and the lingering effects of a massive corruption
scandal have hammered the country's key oil and gas sector, as well
as state-run Petróleo Brasileiro SA Petrobras, as the company is
known, is Brazil's largest company and biggest single source of
investment.
Giant construction firms caught up in the graft probe have
likewise been paralyzed, sending layoffs rippling through the
economy.
Unemployment hit 11.8% in the June to August period. Around 12
million Brazilians are unemployed. Rising joblessness and falling
incomes have hurt retailers, while sales of homes and cars have
plummeted.
Write to Marla Dickerson at Marla.Dickerson@wsj.com and Luciana
Magalhaes at Luciana.Magalhaes@wsj.com
(END) Dow Jones Newswires
November 21, 2016 15:10 ET (20:10 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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