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| Brazil's economy shrinks for fifth consecutive quarter | Brazil's economy shrinks for fifth consecutive quarter |
| (35 minutes later) | |
| Brazil's economy continued to shrink in the first quarter of 2016, contracting by 0.3%. | |
| It was the fifth consecutive quarter in which the economy has shrunk. | |
| However, the figure was not as bad as the 0.8% contraction that had been predicted by economists. | |
| As well as its worst recession in decades, Brazil is grappling with political crisis, following the removal from office of President Dilma Rousseff pending an impeachment trial. | |
| The Instituto Brasileiro de Geografia e Estatistica (IBGE) also said that Brazil's GDP fell by 5.4% year-on-year - which was also better than the 6.1% contraction forecast by Itau Unibanco. | |
| Earlier, the Organisation for Economic Cooperation and Development (OECD) cut its economic growth forecast for Brazil, citing political and corruption concerns. | |
| The Brazilian economy is now expected to contract by 4.3% this year, the OECD said. | The Brazilian economy is now expected to contract by 4.3% this year, the OECD said. |
| Analysis: Daniel Gallas, South America business correspondent | Analysis: Daniel Gallas, South America business correspondent |
| Brazil's economy keeps on contracting sharply - one of the fastest reversals of fortune in the emerging world. | Brazil's economy keeps on contracting sharply - one of the fastest reversals of fortune in the emerging world. |
| The question now is: has the economy reached the bottom, or will it fall even further? | The question now is: has the economy reached the bottom, or will it fall even further? |
| The deep cuts that Brazil's interim government plans to implement suggest things will get worse before they start improving. | The deep cuts that Brazil's interim government plans to implement suggest things will get worse before they start improving. |
| Analysts believe Brazil's best chance of exiting recession are still a year away. | Analysts believe Brazil's best chance of exiting recession are still a year away. |
| "The drop in Brazil Q1 GDP was much smaller than had been expected, but only because of a jump in government spending," said Neil Shearing, chief emerging markets economist at Capital Economics. | |
| Government spending increased by 1.1% quarter-on-quarter, reflecting what Mr Shearing described as "a last-ditch attempt by the Dilma administration to win back public support". | |
| "With fiscal policy set to tighten over the second half of the year, this prop to the economy will go," he added. | |
| According to the latest official GDP figures, the worst performing part of the industrial sector was mining, which contracted by 1.1%. | |
| The manufacturing sector was negative for the sixth consecutive quarter, contracting by 0.3%. | The manufacturing sector was negative for the sixth consecutive quarter, contracting by 0.3%. |
| Construction fell by 1%, but the utilities sector expanded by 1.9%. | Construction fell by 1%, but the utilities sector expanded by 1.9%. |
| In services, trade (-1.0%), financial intermediation and insurance (-0.8%) and information services (-0.7%) showed the largest declines compared with the previous quarter. | In services, trade (-1.0%), financial intermediation and insurance (-0.8%) and information services (-0.7%) showed the largest declines compared with the previous quarter. |