According to calculations by the Brazilian Institute of Economics at think tank Fundação Getulio Vargas, investments in Brazil could fall by 22.6 percent over Q2 compared to the same period last year. It would make for the worst results on record in at least 25 years.
The calculations include the contribution made by two oil platforms in May, if their impact is taken out of the equation, the results are even worse, making for a 26.5 percent drop in Q2. A difference of 4 percentage points. Q2 results are so bad that almost anything short of a full-scale collapse in Q3 investments would register as a recovery.
According to Luana Miranda, a researcher at the institute, the situation is worse than it should be. “There is a clear lack of direction from the government, especially in regards to fiscal accounts.”Support this coverage →