Govt expects investment in Brazil to pick up again in next few years
“A more predictable economic policy should help rebuild confidence,” pointed out Minister Nelson Barbosa
The Minister of Planning, Budget and Management, Nelson Barbosa, said Monday (June 1st) that the investment share in the Gross Domestic Product (GDP) should pick up again in 2016. He noted that investment rose from 17% of GDP in 2003–2004 to 20.5% in 2009–2010, pointing out the Growth Acceleration Program (PAC) – a program introduced in 2007 to expedite large projects in infrastructure, logistics and energy in Brazil – has been an important contribution to this rise.
“It [the investment share in GDP] has fallen below 20% again this year. With the initiatives we are pursuing, we expect [it] to pick up in 2016 and reach 20% again in 2017. And with the government contracts [transferring public services to the private sector], we expect this to happen even faster,” the minister said at an event in São Paulo speaking about the fiscal adjustment.
According to him, the investment share in GDP fell in 2015 due to uncertainties in the international scenario. In addition to incentives including a new concession bid round expected to be announced next week, fiscal adjustment and inflation control measures will help bring back investment. “A more predictable economic policy should help rebuild confidence,” he added.
Barbosa also said the government has implemented “several initiatives to raise investment in education,” despite the budget deferrals announced on May 22, which will block about $3 billion from going to the Ministry of Education.
He stressed that worker qualification is crucial in increasing productivity, and reaffirmed the government is seeking a gradual fiscal rebalancing, aiming for a 2% primary surplus (government savings to pay debt interest) next year.
Translated by Mayra Borges
Fonte: Govt expects investment in Brazil to pick up again in next few years
