Brazil has gone into recession after its economy contracted by 0.8% in the first three months of 2009.

Brazil's economy enters recession
Brazil has gone into recession after its economy contracted by 0.8% in the first three months of 2009.

(Source BBC)
The figure from statistics agency IBGE was still better than expected and a big improvement on the 3.8% decline in the last three months of 2008.

Most economists define a recession as being two consecutive quarters of negative growth.
Also on Tuesday, Romania went into recession following a decline of 4.6% in the first three months of the year.
It had contracted 3.4% in the last three months of 2008, according to the statistics agency Ins.
The International Monetary Fund, which has recently approved a 12.9bn euro ($18bn; £11.1bn) loan for Romania, predicts that its economy will contract by 4.1% in the whole of 2009.

'Momentum'

In Brazil, while household spending grew 0.7% and government spending expanded 0.6%, capital spending fell by 12.6% in a sign of companies cutting back on investment.
"The stronger first-quarter number should add some momentum to the view that the second-quarter recovery could be stronger than expected and growth may not be as bad for the whole year," said Paul Biszko from RBC Capital Markets.
"Obviously it's positive for the currency and I think it will lessen the need for the central bank to cut interest rates aggressively, moving forward."
Foreign investors have been putting money into Brazil recently in the hope that its economy will recover more quickly than other countries.
The Ibovespa stock market index has been reaching levels not seen since before the global financial crisis.
http://news.bbc.co.uk/2/hi/business/8091632.stm

George Soros: China a 'positive force'

George Soros: China a 'positive force'
The billionaire financier George Soros says that China's economy will grow faster than people expect and so will its global economic influence.

SHANGHAI (Reuters) -- Financier George Soros said on Sunday that China's global influence is set to grow faster than most people expect, with its isolation from the global financial system and a heavy state role in banking aiding a relatively swift economic recovery.

He reiterated his cautious views regarding the surge in global stock markets, although he said it may have further to go given liquidity in the markets and that many investors are still sitting on the sidelines.
"In many ways, Chinese banking has benefited from being isolated from the rest of the world and is in better shape than the international banking system," he told an audience at Shanghai's Fudan University.

China's extensive capital controls have helped to shield its financial institutions from the worst of the global financial crisis.
http://money.cnn.com/2009/06/07/news/international/soros_china.reut/index.htm?postversion=2009060712