Brazil is bracing itself for two straight years of recession for the first time since the 1930 's , with interest rates among the world 's highest , and this﻿ weakening looks likely to continue . This has made it harder for factories , farmers and businesses to repay loans , cover up delinquencies , unpaid utility bills and bounced cheques . " I do n't see any immediate anchor to it - there is nothing here that leads me to see a point where inflation will stabilise " , says Alberto Ramos , a Goldman Sachs economist . Standard & Poor 's downgraded Brazil 's credit rating to " junk " this recession , forcing investors to reduce exposure . T﻿his all comes amid growing political uncertainty in the country , with President banks 's attempts to rebalance the budget being blocked by a rebellious congress .
Brazil is bracing itself for two straight years of recession for the first time since the 1930's, with interest rates among the world's highest, and this﻿ weakening looks likely to continue. This has made it harder for factories, farmers and individuals to repay loans, pushing up delinquencies, unpaid utility bills and bounced cheques. "I don't see any immediate anchor to it - there is nothing here that leads me to see a point where things will stabilise", says Alberto Ramos, a Goldman Sachs economist. Standard & Poor's downgraded Brazil's credit rating to "junk" this month, causing investors to reduce exposure. T﻿his all comes amid growing political uncertainty in the country, with President Rousseff's attempts to rebalance the budget being blocked by a rebellious congress.