Market roundup: Infrastructure investment still lagging in Brazil

Road construction in São Paulo state. Photo: Structured Vision/Shutterstock

In Brazil, infrastructure investment still has a long way to go

Infrastructure investment in Brazil is expected to reach a seven-year high in 2022, rising to BRL 163 billion (USD 31.3 billion). Yet the figure remains 20 percent below its 2014 peak, and one of the reasons is that the government has drastically reduced its share of investment.

The outlook. According to an annual survey by the infrastructure association Abdib, there are currently 432 infrastructure projects in Brazil, that could generate investment of up to BRL 544 billion. Of those, 179 are in process, potentially injecting BRL 173 billion into the economy by 2027.

Yes, but … Currently, infrastructure investment represents 1.7 percent of GDP, while the amount considered necessary by Abdib for the country to reduce economic and social development bottlenecks is 4.3 percent of annual GDP over the next 10 years.

Moreover, Brazil has an infrastructure stock-to-GDP ratio of only 34 percent, approximately – much lower than countries such as India and China, at 58 and 76...

Ana Ferraz and Fabiane Ziolla Menezes

Ana Ferraz is a journalist specialized in global affairs and economics. She previously worked at the Italian News Agency ANSA and has been published by multiple Brazilian outlets.