Yet more grim news for the battered Brazilian economy, which shrank by 3.8 per cent last year.

The Organisation for Economic Co-operation and Development (OECD) has today slashed its global growth forecasts, and the outlook for Brazil is particularly dark.

The think tank expects Brazil’s recession to deepen this year with GDP forecast to shrink 4 per cent (it had previously forecast a 1.2 per cent contraction this year). It believes Brazil will only begin to emerge from deep recession next year.

It says the “increasing vulnerability of some emerging economies to volatile capital flows and the effects of high domestic debt” means that, on a global level, “financial instability risks are substantial”.

As well as struggling with such issues, which are impacting emerging markets broadly, Brazil is facing some additional worries of its own, including political instability and the Zika virus.

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