Brazil economy slows unexpectedly
A close-up of a Brazilian one-real coin at Bovespa stock exchange in São Paulo, Brazil, on May 3, 2012.
SÃO PAULO, Brazil – Brazil's economy slowed unexpectedly in the third quarter.
Latin America's largest country came in at just 0.6 percent growth versus the previous quarter, half the rate expected, according to BBC News. Businesses cut investment by another 2 percent, and consumer spending growth was at only 0.9 percent.
Brazil has been stuck at a slow pace since President Dilma Rousseff took office last year, reported Reuters. Companies have been struggling with high costs and infrastructure and labor bottlenecks. The president has attempted to revive the economy with numerous tax cuts and other stimulus, but the latest data showed companies are not responding, with investment falling for a fifth straight quarter.
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"The government is certainly going to be worried about this," Jankiel Santos, chief economist at BES Investimento in São Paulo, said to the BBC. "The expectation is that they are going to come out with more stimulus measures."
Growth for 2012 now looks to be around one percent, compared with 2.7 percent last year and 7.5 percent in 2010, the BBC noted.
Brazil isn't the only nation with slow growth. According to Reuters, India also posted lower-than-expected growth on Friday, making 2012 possibly its worst year in a decade.