BUSINESS Investment in Brazil plunges 27.5 pct in April due to COVID-19


Investment in Brazil plunges 27.5 pct in April due to COVID-19


08:35, June 09, 2020


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RIO DE JANEIRO, June 8 (Xinhua) -- Investment in Brazil plunged 27.5 percent in April compared to the previous month and 32.8 percent compared to the same period the year before, reflecting the impact of the COVID-19 pandemic on the nation's economy, an official source said on Monday.

Gross fixed capital formation (GFCF), a major indicator of investment activity in economy, dropped even further in April than in March, when the GFCF shrank 11.3 percent compared to February, according to the state-run Institute for Applied Economic Research.

In the first four months of the year, investment in Brazil was 5.2 percent lower than in the first four months of 2019, while accumulated investment in the past 12 months ending in April, grew by a modest 0.2 percent.

According to the institute, purchases of machinery and equipment, both made in Brazil and imported, dropped by 39.4 percent in April, with purchases of domestically made machinery tumbling 43.4 percent while purchases of imported machinery fell 27.6 percent.

Investment in civil construction also dipped in April compared to the month before, by some 19.6 percent.

Compared to April 2019, purchases of machinery shrank by 46 percent and civil construction tumbled 25.6 percent. Enditem

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