Brazil's economy slows as eurozone crisis bites

Brazil's economic growth slowed in the third quarter of 2011 as the impact of the crisis in Europe and the slowdown in global growth impacted the region.

According to official figures, GDP growth declined by 0.4% quarter on quarter, to 2.1% compared to a year ago.

Growth came in below forecasts of 2.7%, and it is the first time growth has contracted quarter on quarter since 2009.

The country has already moved to ease policy by cutting interest rates three times since August. They now stand at 11%.

According to International Monetary Fund (IMF) forecasts, Brazil will underperform other emerging economies this year.

GDP growth of 3.8% is pencilled in for 2011, while emerging markets and China will expand 6.4% and 9.5% respectively, the IMF said in its September World Economic Outlook.

The US is expected to grow 1.6%.