Brazilian gross domestic product declined by 0.6 percent in the second quarter of 2016 against the previous quarter and by 3.8 percent against the second quarter of 2015, the Brazilian Census Bureau (IBGE) said Wednesday. The figures were broadly within market expectations. Economists remain hopeful that Brazil’s economy will stabilize in the third quarter and post modest growth in the fourth quarter of this year. Brazilian GDP was hurt mainly by a drop in agricultural production, hit by dry weather, and by a decline in services, due mainly to persistent unemployment. Agricultural production was down 2 percent against the first quarter while services declined 2.1 percent. Industry posted a small quarter-on-quarter decline of 0.2 percent but investment rose by an encouraging 0.4 percent.
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