Bad days are just not over for Brazilian economy as it shrinks from crisis to crisis. High corporate debt of the country, couples with lower commodity prices led to a currency and inflation crisis. Brazilian Real is down more than 50% against Dollar in last 12 months, traded to record low of 4.247 per Dollar. Recovered somewhat after central bank pledged to do, whatever it takes to stem Real's drop. Real is now at 3.87 per Dollar.

Scandal at Petrobras created another crisis, which turned out to be political one. People protested across streets, calling for impeachment of President Dilma Rousseff. Just when things were settled down, CEO of Brazil's largest investment bank BTG, got arrested over Petrobras scandal.

Now GDP data for third quarter, released today, shows that crisis may spill over well into next year.

Brazilian economy shrank for third consecutive quarter. Third quarter growth came at -1.7%, after shrinking -0.8% in first and -2.1% in second. Economists were expecting slower pace of contraction of no more than -1.2%.

Inflation rate (9.93%) is still way above central bank's target range, which will make any reduction in rate difficult, which stands at 14.25%.