Caution About the Start of Recovery

BRAZIL ECONOMICS - Report 10 Oct 2016 by Affonso Pastore, Cristina Pinotti, Marcelo Gazzano and Caio Carbone

The most recent economic activity indicators were disappointing and make it probable that GDP will contract further in the third quarter this year. Apparently the recession will be a bit longer than was expected a few weeks ago, and the latest numbers strengthen the forecast that the monetary easing cycle will be very intense.

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