With Brazil experiencing a multiyear drought in São Paulo state (São Paulo accounts for 40% of Brazil's industrial production), a sluggish economy, and a major corruption scandal, investors have been pessimistic about the country's economy. Furthermore, between 2013 and 2014, the net profits of small businesses in Brazil decreased due to high tax, high inflation, and interest rates, which led to high costs. The slowdown experienced by the economy has led to a fall in consumer confidence and GDP is expected to contract 1.08% in 2015 and grow by just about 1.1% in 2016.