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07 Aug 2018, Petia Krasteva, EMIS Editor

Brazil’s investment growth likely to remain moderate this year

Growth of investments in Brazil is likely to remain moderate this year by some 3.5-4.0%, Valor Economico International reported citing projections by the Bradesco’s economist Igor Velecico. The bank has cut its projection for the 2018 gross fixed capital formation (GFCF) to 3.5% from earlier 6% saying expectations for lower investment is the major factor to behind the downward revision of its 2018 GDP growth forecast to 1.1% from earlier 1.5%.

Velecico commented the truckers strike in May has seriously shattered business confidence while the very slow economic recovery and the upcoming October general elections along with the rising longer-term interest rates and the real's devaluation affect add up to investor uncertainty and make companies delay any bigger expansion plans.

Sign in and read the full article in emis.com, or find out more about EMIS. Original source: Valor Economico International