Brazil’s economy: It’s ugly

Like watching a slow-motion train wreck.
Like watching a slow-motion train wreck.
Image: AP Photo/Dario Lopez-Mills
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Brazil’s economy is slowing down fast.

The South American giant’s unemployment rate jumped to 6.7% in May, the highest since 2010.

Image for article titled Brazil’s economy: It’s ugly

Inflation is still running high, at 8.5% in May.

And the country looks to be on the brink of recession, after the economy contracted by 0.2% in the first quarter.

And those aren’t the only reasons to be dour. Wages are down. The central bank is raising interest rates to counter inflation. And with political and business leadership of the country increasingly mired in the Petrobras corruption scandal, there’s little chance that things are going to turn around immediately.

So if you’re looking for a big contributor to global economic growth this year, look elsewhere.