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

BUSINESS

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

Xinhua

08:35, June 09, 2020

shutterstock_1061638715.jpg

File photo

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

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue