Water Crisis And Politics Are Expected To Slow Down Investment Pace In Brazil, Says FGV

Written by Fabio Lucas Carvalho

Published on 08/09/2021 at 13:01

Foto: Marcelo Camargo/Agência Brasil

Seja o primeiro a reagir!

Water Crisis And Political Crisis Are The Main Factors That Should Slow Investments This Year And The Beginning Of Next Year

Many Brazilians were excited about the economic recovery after the progress of vaccination and prospects for the end of the pandemic; however, things are not going as expected. The political and water crisis is causing severe damage to investments in the country.

According to an assessment made by FGV specialists, the water crisis, along with the political crisis, should slow investments in Brazil at least until the beginning of next year.

The Investment Intention Indicator rose slightly in the third quarter of this year; however, the services sector at 110.9 points and construction at 103.6 points are below the levels recorded before the pandemic. The highest number is in the industry, with 129.2 points, but it is lower than what was recorded at the beginning of the year, 132.8.

ARTICLE CONTINUES BELOW

The Coming Months Should Be Of Low Growth

In a survey conducted by Estadão, Rodolpho Tobler, responsible for the confidence survey at FGV, expects a scenario of low growth in the coming months. The high unemployment rate, inflation, and water crisis are the main factors that justify a perspective of low economic growth economic.

With the GDP decrease in the second quarter of this year, growth prospects for the economy have fallen by about 5% for this year. However, economic growth for 2022 is expected to remain high between 1% and 2%. This situation should reduce the pace of investments in Brazil.

Water Crisis And Politics Are Expected To Slow Down Investment Pace In Brazil, Says FGV

Water Crisis And Political Crisis Are The Main Factors That Should Slow Investments This Year And The Beginning Of Next Year

The Coming Months Should Be Of Low Growth

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

Scientists are baffled by the discovery of a bizarre arachnid preserved in amber for 35 million years and reveal a surprising climatic past of Europe.

A 20-year-old Brazilian leaves law school at USP to help in the war in Ukraine and is now missing after months in combat, prompting action from the Itamaraty, the embassy in Kiev, and his family in Greater São Paulo.

Tax reform: September is the deadline for 22 million companies under the Simples Nacional.

Road at 4,173 meters in Pakistan only opens 4 months a year.

Water Crisis And Politics Are Expected To Slow Down Investment Pace In Brazil, Says FGV

Water Crisis And Political Crisis Are The Main Factors That Should Slow Investments This Year And The Beginning Of Next Year

The Coming Months Should Be Of Low Growth

The oldest tree in the world, alive since before the birth of Jesus Christ, is cut down in a scientific study and the case changes environmental preservation rules.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

While in Brazil a 10-story building takes 2 years to complete, in China a company stacks pre-fabricated modules and raises the entire building in just 28 hours and 45 minutes.

An entire island in the Pacific wants to surround itself with a colossal barrier against the ocean to try to escape increasingly violent waves and not be swallowed by the sea in the coming decades.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

With 7.4 trillion tons of artificial snow pumped in 10 years, an extreme operation could stabilize the West Antarctic ice sheet and prevent a sea level rise of more than 3 meters, but it would require snow cannons, ocean water, and energy on an almost industrial scale at the end of the world.

Peru built a tunnel at an altitude of 4,738 meters cutting through the Andes Mountains, and the road leading to it reaches 4,818 meters, making it the highest paved road in the entire world.

Tax reform: September is the deadline for 22 million companies under the Simples Nacional.

The Brazilian government and Spain signed a strategic agreement on critical minerals this week and accelerated plans to attract investments, dominate essential technologies, and position Brazil as a competitive hub in the new global economy.

Vietnam opens its market to Brazilian beef calves and grants access to a destination that has already imported over US$ 3.5 billion from the national agribusiness, expanding exports, reducing waste, and boosting slaughterhouses across the country.

While the world was paying more for fuel, the 100 largest oil companies on the planet raked in an extra $23 billion in just 30 days of blockage in the Strait of Hormuz.

In 1996, with just R$ 1, it was possible to buy items like pants and everyday goods, but what has happened to the purchasing power of Brazilians from the beginning of the Real Plan until today?

Scientists are baffled by the discovery of a bizarre arachnid preserved in amber for 35 million years and reveal a surprising climatic past of Europe.

A 20-year-old Brazilian leaves law school at USP to help in the war in Ukraine and is now missing after months in combat, prompting action from the Itamaraty, the embassy in Kiev, and his family in Greater São Paulo.

Tax reform: September is the deadline for 22 million companies under the Simples Nacional.

Road at 4,173 meters in Pakistan only opens 4 months a year.