Brazilian business travel will continue its recent slump for the remainder of 2016, according to a report from the GBTA.

The study forecast that business travel spend in Brazil will decline by 8.5 per cent this year.

It cited multiple factors that are negatively affecting travel throughout the country such as domestic recession, slow global growth and lower commodity prices.

The GBTA BTI Outlook – Brazil found business travel spend in Brazil was $30.5 billion in 2015, down 4.1 per cent from 2014. The drop coincides with the country’s economic prospects continuing to worsen as it attempts to “weather the perfect storm” of freefalling domestic activity, weak global growth, high inflation, deteriorating fiscal conditions and an uncertain political climate.

Despite the weak forecast the study found there is cautious optimism that this year will be the nadir of business travel before a modest recovery in 2017.

“Despite the country’s short-term difficulties, we are optimistic that 2016 will be the low water mark for business travel, and we will start to see gains – albeit modest ones – in the near future,” said GBTA Brazil regional director Wellington Costa.

The study also found that in respect to business travel the Olympics will have little to no effect on the business travel forecast.

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