Brazil's Q3 GDP contracts 0.5%, missing estimates of a 0.3% contraction, and the worst performance since 2011 Q3. On a Y/Y basis, the economy grew 2.2%. The decline in Q3 was led by agriculture, which fell 3.5%. Investment also declined 2.2%.
The news adds to complications for President Rousseff who is up for election next year. Her government has already slashed by nearly half its forecast for robust 4.5% growth in 2013.
The central bank last week continued its rate-hike cycle, but gave indications a pause could be coming soon, and the slow GDP report is unlikely to change that view.