Rio de Janeiro – Brazilian industries intend to increase their investment by 21.7% in the next three years. The figure was disclosed this Thursday (22nd) by the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV, in the Portuguese acronym). The Institute questioned 779 companies in January and February this year regarding their intentions to invest in stepping up production capacity from 2012 to 2014.
According to the FGV, the rate is lower than last year’s, which covered the 2011-2013 period (22.2%) and it is also lower than that of 2010, which concerned 2010 to 2012 (23.8%). Still, the 21.7% growth rate estimated for the next three years is equivalent to an average annual growth of 6.8%, which is considered “high” by the FGV.
To the companies, the key determining factors to investment are domestic demand and the domestic macroeconomic scenario. On the other hand, the most negative factor singled out by the enterprises is the foreign economic scenario.
The industry with the highest rate was non-durable consumer goods (24.5%). Others were capital goods (23.1%), durable consumer goods (23%), building material (22.3%) and intermediate goods (19%).
*Translated by Gabriel Pomerancblum
