Brasília – A survey on investment in quarter one this year, issued this Wednesday (19th) by FGV – Foundation Getulio Vargas’ Brazilian Institute of Economics (Ibre) of shows a trend of decline in investment by Brazilian enterprises over the course of 2014.
The survey covered 722 companies with a combined sales figure of R$ 535 billion (US$ 277.5 billion). In quarter one, 2014, 37% of the companies polled claimed to have invested more, and 18% claimed to have invested less in the last 12-month period, compared with the immediately preceding period. In quarter four, 2013, the rates had been 41% and 20%, respectively.
In the next 12 months, the downward trend suggested by past results should become more pronounced, seeing as 34% of companies plan on increasing investment, whereas 16% plan on cutting down investment as compared to the prior 12 months. As of quarter four 2013, the rates were 43% and 14%, respectively.
Regarding the level of domestic demand, projections for 2014 are also worse than those of last year: 47% of the companies polled believe the level of domestic demand will have a positive influence on investment in production, down 20 percentage points from last year.
*Translated by Gabriel Pomerancblum
