Rio de Janeiro – The Economic Climate Index (ICE) for Latin America fell for the third quarter running, from negative 26.4 points in July 2019 to negative 28.2 points in October. The figures were made public this Monday (11) by the Brazilian Institute of Economics at Fundação Getulio Vargas (Ibre/FGV) in partnership with German institute Ifo.
In turn, the Expectations Indicator (IE) for the region fell from 17.2 to 15.5 points in the same period, remaining in the favorable zone. The Current Situation Indicator (ISA) also decrease – from -61.3 to -63.0. Brazil’s index has also worsened, with ICE falling from -23.2 in July to -25.0 in October. ISA remained unchanged at negative 75 points, while the Expectations Indicator fell from 50.0 to 45.0 but remained positive.
According to the survey, the main problems Brazil faces are inadequate infrastructure, insufficient demand, lack of international competitiveness, lack of innovation, corruption, legal barriers for investors, lack of skilled workforce, political instability, rising income gap, and barriers to export.
Translated by Guilherme Miranda