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Dilma Rousseff

Brazil's economic downturn deepens with further GDP drop

Latin America's largest economy has shrunk even more than expected, increasing fears about the well-being of a nation hammered by falling commodity prices and a massive corruption scandal.

Gross domestic product fell by 4.5 percent in the third quarter compared with the same time frame last year, the country's statistics bureau reported on Tuesday.

The cumulative drop of 3.2 percent for the year so far is the worst since 1996, according to the Brazilian Institute of Geography and Statistics as the worst since 1996.

"The result is that Brazil's economy has now contracted for three straight quarters and is more than 5 percent smaller than it was at the start of...