(MENAFN) Brazil's worsening political conditions affected its economy big time, thus the economic shrinkage of 1.9 percent in the April-June period was worse than experts forecasted.
Furthermore, weaker consumer purchasing power also had a major effect, which as a result would cripple local demand and foreign investor courage, according to a released statement from the International Monetary Fund.
Meanwhile, it's well predicted that Brazil's GDP could deteriorate by 2.26 percent this year, the worst in quarter of a century, with all of this meaning that the country has entered into recession after two quarters of slow growth.
However, to bring back Latin America's largest country on its feet, the government is strongly advised to start a package of structural reforms to upgrade business atmosphere and begin to regain lost market confidence.
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