Brasilia, Sep 22 (Prensa Latina) Brazil's economic activity registered a 0.02 drop last July compared to June and the economy contracted by 1.89 percent in comparison with the exact period in 2014, the Central Bank announced today.
According to the report of the Economic Activity Index, the national economy contracted by 2.74 percent during the seven first months of 2015, which makes analysts predict a contraction of the 2.7 percent of the Gross Domestic Product (GDP).

Since earlier this year, Brazil is going through a recession after the drop of the GDP, which led to the adoption of adjustment measures and cuts in social expenditure, as well as an increase in taxes.

In spite of the situation and ominous forecasts, the government has launched another austerity plan, in an attempt to cover the primary deficit of 0.5 percent of the Gross Domestic Product in 2016 and achieve a surplus of the 0.7 percent.

The proposal included important cuts in the administrative area, a postponement of salary increases and the reduction of fiscal benefits granted to the export sector and the chemical industry, as well as cuts in social housing and health care programs.