Brazil has the lowest proportion of public investment in Latin America

According to data released by the World Bank, Brazil has a low proportion of public investment compared to countries in Latin America and the Caribbean (LAC).

The national contribution is 1% of GDP (Gross Domestic Product).

Bolivia, which leads the ranking in the region, invests 11% of its GDP.

Dominican Republic and Haiti follow with 9% and 7%, respectively.

Brazil is ahead only of Aruba.

On average, LAC countries allocated 3% of GDP to public investments.

The level is well below East Asia (20%) and Africa (7%).

The data in the infographic above were released in the Economic Report of Latin America and the Caribbean.

President Luiz Inácio Lula da Silva (PT) has asked the economic team under Finance Minister Fernando Haddad to create a fiscal rule that contemplates an increase in the amounts destined for public investments.

The government announced the proposal, but the text has not yet been sent to the National Congress.

Public investment is in the range of discretionary spending – those that can be cut in the budget. They correspond to less than 10% of the public expenses foreseen for one year.

With information from Poder360

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