Brazil's President Michel Temer. Photo: Reuters / Ueslei Marcelino

Brazil’s GDP contracted by 0.9 percent in the fourth quarter of 2016, far worse than median estimates of 0.5 from Bloomberg surveys. Unemployment is at record levels as political crises have wreaked havoc on investment and consumption in the country. David Biller at Bloomberg notes that against this backdrop an economic recovery would be difficult despite austerity measures taken by President Michel Temer.