Study: Brazil’s investment rate hits highest level since 2015, but growth is punctual

According to a study by the Getulio Vargas Foundation (FGV), a relevant part of this improvement came from higher prices of capital goods in relation to the prices of the economy as a whole.

RIO DE JANEIRO, BRAZIL - In the third quarter of last year, the investment rate in the Brazilian economy reached 19% of GDP. This is the highest level since the second quarter of 2015, when it also stood at 19%. And a considerable rise from the 15.7% in the third quarter of 2020.

However, according to a study by researchers at Ibre/FGV, these figures were driven by punctual factors, and do not indicate robust economic activity.

In the third quarter last year, while overall inflation accumulated a 9.9% year-on-year rise, investments measured by the Gross Fixed . . .

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