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Brazilian gov't blames "domestic issues" for fall in GDP

Xinhua, June 2, 2016 Adjust font size:

Brazil's interim government said on Wednesday that the 0.3 percent fall in GDP in the first quarter of 2016 was mainly due to "domestic issues."

In a press release, the Ministry of Finance said that the government's economic recovery measures should kick in over the next few months, helping to break this slowdown.

According to official government data, this represents the fifth successive quarterly slump for the country's economy.

"The statistics of our national accounts confirm that, in the first quarter, essentially due to domestic developments, we continued the most intense recession of our history," the press release said.

"In the next quarters, however, largely due to the implementation of recently announced initiatives, we will see the Brazilian economy begin to grow again," the ministry added.

Since taking office on May 12, President Michel Temer has successfully seen Congress raise the country's deficit ceiling, announced plans to liberalize the oil industry and vowed to make swinging cuts to government spending.

In 2015, the national economy contracted by 3.8 percent, the worst result in 25 years. Many analysts predict a similar contraction for this year. Endit