However, the Brazilian economy has been struggling to step out of the recession it experienced a year ago. The tenuous circumstances are further exacerbated by a paralyzing trucker strike that depressed growth this year. Meanwhile, unemployment is still in the double digits.

Furthermore, a cloud of uncertainty lingers over Brazil ahead of elections and a more adverse scenario for emerging markets in general.

Economists surveyed by the central bank have lowered their 2018 gross domestic product outlook to 2.5%, or 0.4 percentage points lower than the four months prior. The recent trucker strikes has also lead to Alfredo Coutino, Latin America director for Moody’s Analytics, to lower 2018 growth expectations to 2%, with knock-on effects potentially dragging it even lower.

“This uncertainty and volatility facing the country will have an impact on investor decisions and also consumer decisions,” Coutino said before release of the data, adding that delayed investments would exacerbate an existing problem. “There has been a recovery in the Brazilian economy, but investment continues to be insufficient to sustain a prolonged recovery.”

For more information on the Brazilian markets, visit our  Brazil category.