2020 saw Brazil’s lowest investment in infrastructure since 2000 – report
RIO DE JANEIRO, BRAZIL – The performance began to worsen in 2013, intensified with Operation Lava Jato, and plummeted last year with the spread of the coronavirus in the country.
The Covid-19 pandemic has pushed the share of infrastructure investments in the Gross Domestic Product (GDP) to its lowest level at least since 2000.
The data dor 2020 are contained in the Infra2038 Report – an annual publication assessing the conditions for the advance of Brazilian infrastructure as a pillar of global competitiveness.
The initiative emerged in August 2017 at the Lemann Foundation’s annual leaders’ meeting. It has since been measuring the sector’s constant setbacks.
According to the report, last year Brazil invested a total of R$115.8 (US$22.9) billion in the sector, or 1.55% of GDP – a 54% drop from 2019, when the country ranked 78th in global competitiveness.
To reach 20th place by 2038, the initiative’s goal, Brazil would need to invest some R$339 billion per year until that time. This would mean climbing 3 positions per year in the World Economic Forum’s competitiveness ranking. Investments would generate 9.2 million jobs by 2038.
Despite the drop in investments last year, Brazil may rise some positions in the world ranking, as worldwide investments retreated because of the pandemic, said Infra2038 executive committee member Frederico Turolla, partner at Pezco Economics consultancy.
Another reason was the number of privatization auctions held last year, which should convert into future investments.
“The ranking is based on physical coverage and perceptions, with equal weight. Several auctions of great magnitude were held and were successful, and this places infrastructure at the heart of investors and companies’ agenda,” the report said.
Source: Exame
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