Brazilian economy in prolonged recession

The Brazilian economy contracted 1.7 percent in the third quarter of the year over the previous quarter, signalling a prolonged recession.

Gross domestic product (GDP) fell 4.5 percent year on year in the third quarter, Xinhua quoted government statistics agency, IBGE, as saying on Tuesday.

In the first nine months, the economy contracted 3.2 percent compared with the same period in 2014.

Almost all sectors contracted quarter on quarter. Agriculture fell 2.4 percent, industry 1.3 percent and services one percent.

Investment fell four percent quarter on quarter and 15 percent year on year.

Household consumption fell 1.5 percent from the second quarter and 4.5 percent year on year.

Public sector consumption was the only area where a quarter-on-quarter increase of 0.3 percent was registered. However, it fell 0.4 percent year on year.

Brazil's investment rate fell to 18.1 percent of GDP, down from 20.2 percent in the same period last year.

The country's savings rate, meanwhile, fell to 15 percent in the third quarter from 17.2 percent.