World

Brazil's economy shrinks more than expected, worsening fears about crisis

  • A street vendor sells shoes and shirts in Sao Paulo's shopping district, Brazil, Tuesday, Dec. 1, 2015. Latin America's largest economy has shrunk even more than expected, increasing fears about the well-being of a nation hammered by falling commodity prices and a massive corruption scandal. (AP Photo/Andre Penner)

    A street vendor sells shoes and shirts in Sao Paulo's shopping district, Brazil, Tuesday, Dec. 1, 2015. Latin America's largest economy has shrunk even more than expected, increasing fears about the well-being of a nation hammered by falling commodity prices and a massive corruption scandal. (AP Photo/Andre Penner)  (The Associated Press)

  • In this photo taken with a slow shutter speed, people walk through a shopping district in Sao Paulo, Brazil, Tuesday, Dec. 1, 2015. Latin America's largest economy has shrunk even more than expected, increasing fears about the well-being of a nation hammered by falling commodity prices and a massive corruption scandal. (AP Photo/Andre Penner)

    In this photo taken with a slow shutter speed, people walk through a shopping district in Sao Paulo, Brazil, Tuesday, Dec. 1, 2015. Latin America's largest economy has shrunk even more than expected, increasing fears about the well-being of a nation hammered by falling commodity prices and a massive corruption scandal. (AP Photo/Andre Penner)  (The Associated Press)

  • People walk through a shopping district in Sao Paulo, Brazil, Tuesday, Dec. 1, 2015. Latin America's largest economy has shrunk even more than expected, increasing fears about the well-being of a nation hammered by falling commodity prices and a massive corruption scandal. (AP Photo/Andre Penner)

    People walk through a shopping district in Sao Paulo, Brazil, Tuesday, Dec. 1, 2015. Latin America's largest economy has shrunk even more than expected, increasing fears about the well-being of a nation hammered by falling commodity prices and a massive corruption scandal. (AP Photo/Andre Penner)  (The Associated Press)

Brazil's government says Latin America's largest economy has shrunk even more than expected.

The government statistics bureau said Tuesday the gross domestic product fell by 1.7 percent in the third quarter compared with the previous three months.

More worrisome is the cumulative number for 2015, which showed a drop of 3.2 percent, the worst result since 1996.

Families cut spending by 4.5 percent compared to the same quarter last year.

A global plunge in commodity prices continues to hurt Brazil, with the agriculture sector generating 2.4 percent less income than in the previous three months. A massive corruption scandal involving politicians and the state-run oil company has ensnared the biggest names in construction in the country and halted many projects.