Brazil economy contraction to last through 2016

The outlook for Brazil's economy worsened Monday with GDP contraction forecast to extend into next year and inflation projections also slightly rising.

A central bank survey of economists showed the economy is on course to shrink 2.01 percent this year and for the first time indicated that the contraction will continue through 2016 with a shrinkage of 0.15 percent.

The survey also showed that inflation remains forecast at 9.32 percent this year, but it raised the 2016 projection for price rises to 5.44 percent from 5.43 percent.

The numbers come as the world's seventh largest economy is struggling with a political crisis and a massive corruption scandal that has badly damaged state-owned oil giant Petrobras.

Moody's cut Brazil's credit rating to near junk status last week, reflecting growing struggles with debt.