Brasília – Investments – gross fixed capital formation – declined 1.3% in Q1 this year in comparison with Q4. This is the seventh straight drop of this index in this type of comparison, according to data released this Friday (29th) by the Brazilian Institute of Geography and Statistics (IBGE) on the Quarterly National Accounts.
Also, in comparison to Q1 2014, there was an investments reduction of 7.8%, signaling the fourth straight decline in this type of comparison. Year-to-year, gross fixed capital information had the third straight decline with a drop of 6.9%.
“This has a lot to do with the processing industry performance [which dropped 1.6% in comparison to Q4 and 7% over Q1 2014]. It has a lot to do with capital goods production, which is also a very important element within investments”, said the coordinator of IBGE’s National Accounts. Rebeca Palis. The investment rate stood at 19.7% of the Gross Domestic Product (GDP).
*Translated by Sérgio Kakitani
