(MENAFN) Brazil saw its Latin America's largest economy decline more than analysts' projections, on the back of rising unemployment and higher inflation which severely impacted the local demand.
Additionally, the national statistics institute stated that Gross domestic product dropped 1.7 percent in the Jan-March period, after a revised 2.1 percent decrease throughout the previous quarter.
This marks the first three- quarter contraction since the institute's series began in 1996, hence the central bank has boosted borrowing costs to the highest since 2006, depressing demand and boosting unemployment.
"When you look at the numbers just on the domestic demand side, excluding net exports, the way this is going I think soon we have to label this a depression rather than just a recession,' said a chief economist.
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