RIO DE JANEIRO Ė Brazilís economy contracted 2.9 percent in the third quarter, compared to the same period in 2015, the Brazilian Institute of Geography and Statistics (IBGE) said Wednesday.
The latest drop in the gross domestic product (GDP) indicates that there is no end in sight to the severe recession in South Americaís largest economy, economists said.
The economy has contracted for 10 straight quarters, with GDP declining 4 percent in the first nine months of 2016, marking the worst performance in a January-September period since the current statistical methodology was introduced in 1996, the IBGE said.
The poor performance in the July-September period casts doubt on forecasts by the government and economists calling for the economy to start growing in the second half of 2016.
Brazilís economy contracted by 3.8 percent in 2015, marking the worst economic downturn in the past 25 years.
The South American countryís GDP contracted 4.4 percent in the January-October period on a year-on-year basis, a performance that is worse than analystsí forecasts of a 3.4 percent decline for the entire year.
If the forecasts turn out to be accurate, Brazilís economy will contract for two years in a row for the first time since 1930.