Further downside likely for Brazil's consumption and growth

Over the past year, Brazil's unemployment rate has risen by 2.6pp to 7.6%. 

The recent pace of deterioration in the labour market was slightly greater than expected despite having accounted for the contraction of the macro economy, and this could, unfortunately, ensure a far worse contraction in private consumption in 2016 than estimated.

"This would hit the economy hard, and growth could fall well short of our expectation of -0.7% in 2016. The unemployment rate could also come in higher than the current estimate: 8.9% in Q4 16; average 8.5% in 2016", says Societe Generale.