Brazil's economy dips 3.6% in 2016 in historic recession

Brazil's economy has fallen sharply for a second consecutive year, putting Latin America's largest country in its deepest recession in modern history.

The country's statistics agency said on Tuesday that Brazil's gross domestic product shrank 3.6 percent in 2016 following a dip of 3.8 percent in 2015.

Brazil's deepest recession had been registered in 1930-1931, when its economy dropped 2.1 percent and 3.3 percent, respectively.

Brazil's President Michel Temer says the first signs of recovery have appeared, but many economists predict another difficult year for the country.

Temer took over in May following the suspension and impeachment of former President Dilma Rousseff for breaking fiscal laws.