Critical but stable: 2017 could see the start of Brazil’s slow recovery

2016 was another bad year for the Brazilian economy. GDP dropped 3.8% in 2015, and 2016 is expected to end with another drop of 3.5%, meaning the country has now been in recession for two years. However, forecasts predict that the economy will slowly begin to improve - minor growth of 0.8% is expected for 2017, and 3.0% in 2018.

There are three major contributors to the 2016 downturn.