Brazil faces recession as GDP drops 1.9 percent in Q2

(MENAFN) Already beaten up by political crisis and declining commodity prices, Brazil had to also deal with recession recently, with gross domestic product (GDP) falling 1.9 percent in the April-June period.

Economists believe the country is headed for the longest recession since 1931, with the economy being tailed off for a consecutive four years, driven by plunging oil prices, and the major decline in commodity exports.

Moreover, with the national currency down 25 percent and unemployment rate at 7.5 percent and rising, all down to a projected 9.5 percent inflation this year, the situation isn't going to get better anytime soon.

"Brazil is making strong adjustments to hold back inflation," said an official trying to stress on the positive side to the bad news, but he continued "Brazil's problem is even more political than economic."