Brazil's 2012 GDP worst in three years: IBGE

PHOTO: Brazil's 2012 GDP worst in three years: IBGE

RIO DE JANEIRO - The Brazilian economy grew a mere 0.9 percent in 2012 despite government stimulus measures, its worst performance in three years, official statistics showed Friday.

This was the worst result by the world's sixth largest economy since 2009, when its GDP contracted by 0.3 percent as a result of the international economic crisis.

The Brazilian Institute of Geography and Statistics (IBGE) said that in the fourth quarter of last year, GDP rose 0.6 percent over the previous quarter.

The government began 2012 with an annual growth forecast of 4.5 percent but gradually revised it downward throughout the year as did financial markets.

Analysts and the Central Bank had expected GDP growth of around one percent.

In 2010, the Brazilian economy expanded a sizzling 7.5 percent but the following year grew only 2.7 percent.

IBGE said that last year, the farm sector grew 2.3 percent, industry 0.8 percent and the service sector 1.7 percent.

The country's GDP reached 4.4 trillion reais (roughly S$2.7 trillion) in 2012.