How Severe Will the Recession Be?

BRAZIL ECONOMICS - Report 09 Feb 2015 by Affonso Pastore, Cristina Pinotti and Marcelo Gazzano

Despite the option for a gradual fiscal adjustment to save economic activity from an intense contraction, it’s becoming increasingly clear that Brazil is not only facing a recession in the coming months, but rather negative GDP growth for the entire year. This conclusion holds even without including in the calculations the negative effects of possible electricity rationing. So, the question is how severe the recession will be.

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