Brazil's economy, the seventh largest in the world, has entered a recession, with gross domestic product slipping 1.9 percent in the second quarter, official figures showed Friday.
GDP had already been down 0.7 percent in the first quarter of the year, the government statistics agency IBGE said.
Brazil's economy has been slipping for four years after a boom fueled by commodity exports, principally to China. Falling prices for oil and other commodities have punched huge holes in the budget.
Adding to the economic malaise is a growing political crisis in which President Dilma Rousseff faces calls for her impeachment and discontent -- even among many of her own supporters -- over austerity measures.
A huge corruption investigation named Operation Car Wash has revealed a bribes and embezzlement scheme centered on the state oil giant Petrobras and involving politicians and senior executives. Rousseff's Workers' Party has also been dragged into the scandal.
A quick recovery is not expected.
Earlier this month, a central bank survey of economists for the first time indicated that the contraction will continue through 2016 with a shrinkage of 0.15 percent.