Economy

Business investment intent in Brazil is highest in 6 years

According to a survey from the Ministry of Economy, companies announced nearly $ 62 billion in investments in the country in the coming years

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  • During the first six months of 2019, companies announced $ 61.74 billion in investments in Brazil for the coming years;
  • But according to analysts, there is a lack of a more concrete view of the country’s future, an economic agenda of the state, not of the party or government, that gives more security to new investments.

During the first six months of 2019, according to a survey by the National Investment Information Network (Renai) that is linked to the Ministry of Economy, companies announced $ 61.74 billion in investments in Brazil for the coming years. The value, despite being half of the 2012 amount, is the highest in the last six years.

According to analysts and sectoral entities polled by the Gazeta do Povo newspaper, this figure reflects an increase in confidence in the country, as important structural reforms, especially concerning social security, seem to be in place.

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According to these same analysts, there is a lack of a more concrete view of the country’s future, an economic agenda of the state, not of the party or government, that gives more security to new investments.

Overall, most ($ 38 billion) of announced investments will come from the country itself and will be used for expansion ($ 23.2 billion) or expansion and modernization ($ 14 billion).

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Also according to data from Renai, the companies responsible for the largest investment volumes are in the industrial sectors or segments (extraction and transformation) and also in the area of ​​energy, gas, and water.