It was the fifth consecutive quarter in which the economy has shrunk.

However, the figure was not as bad as the 0.8% contraction that had been predicted by economists.

As well as its worst recession in decades, Brazil is grappling with political crisis, following the removal from office of President Dilma Rousseff pending an impeachment trial.

The Instituto Brasileiro de Geografia e Estatistica (IBGE) also said that Brazil's GDP fell by 5.4% year-on-year - which was also better than the 6.1% contraction forecast by Itau Unibanco.

Earlier, the Organisation for Economic Cooperation and Development (OECD) cut its economic growth forecast for Brazil, citing political and corruption concerns.

The Brazilian economy is now expected to contract by 4.3% this year, the OECD said.

Production fell in all the three main economic sectors: agriculture, industry and services.

Exports were a rare bright spot, however, increasing by 6.5% compared with the fourth quarter after a sharp fall in the value of the real.