Brazilian economy slides further in Q2, report says

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Brazil's economy has fallen further in the second quarter of this year, according to an official report released on Monday.

The report shows Brazil's gross domestic product (GDP) shrank 0.24 percent in the second quarter of 2017 compared to the first quarter.

A study by the prestigious Getulio Vargas Foundation (FGV) shows, compared to the second quarter of 2016, the fall in Brazil GDP is even sharper. The construction sector saw a 7.4 percent decline, which is dragged down Brazil’s overall GDP growth in the second quarter.

Brazil's economy has fallen further in the second quarter of this year /Reuters Photo

According to the official report, Brazil's economy has been recovering slowly from its worst recession ever, seeing two consecutive years of negative growth in 2015 (-3.8 percent) and 2016 (-3.6 percent), for the first time since 1931.

The Brazil’s economy has a 1 percent growth in first quarter, while the forecast calls for maximum growth of 0.5 percent for the year, the report said.

In terms to achieve a great success around the BRICS regions, the Board of Governors of the New Development Bank, formed by the ministers of finance of the BRICS nations, intends to approve at least 32 billion US dollar in loans by 2021.

President of the New Development Bank (NDB) Kundapur Vaman Kamath (L), China's Finance Minister Lou Jiwei (C) and Shanghai's mayor Yang Xiong attend a opening ceremony of the New Development Bank in Shanghai, China, July 21, 2015. /CGTN Photo

The NDB also issued a three-billion-yuan (449.8 million US dollar) green financial bond last year, which is already approved seven projects in BRICS countries.

The NDB was established by BRICS countries to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.

With less than two weeks, China is ready to hold the rotating chair of the emerging market block of countries this year which include Brazil, Russia, India, China and South Africa.

AFP Photo

Apart from BRICS members, China this year also invited participants from 16 other countries, which includes countries such as Chile, Guinea, Tajikistan, Kazakhstan, Ethiopia, Tanzania and Egypt.

Along with this year’s summit theme, "BRICS: Stronger partnership for a brighter future”, BRICS 2017 is going to focus on trade, finance, economy, south-south, and south-north cooperation, and the Belt and Road Initiative.

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