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

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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.

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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

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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

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Great Atlantic Sargassum Belt has ceased to be a climatic phenomenon and has become a biological system that feeds on itself, with 8,000 kilometers in length, 37 million tons of algae, and scientists confirm that it is now permanent.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

Engineers had to pour concrete mixed with tons of ice throughout entire nights in the Dubai desert to erect the Burj Khalifa; any carelessness could clog the pipes half a mile high.

The James Webb telescope spotted a planet 700 light-years from Earth with mornings full of sand clouds and nights with clear skies, the temperature difference between the two hemispheres reaches an impressive 170 degrees.

PCC and Comando Vermelho enter the U.S. terrorism list and the Brazilian market is already trying to understand where this might hit first.

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In a billion-dollar agreement of nearly R$ 50 billion, Dell takes over the supply of Microsoft software for the Pentagon and accelerates one of the largest military digital transformation initiatives of the decade with a direct impact on security and technology.

Road that charges electric vehicles through the ground is already operational in the USA and could change the future of wireless charging

BYD will bring the God’s Eye to Brazil in 2027, named Olho de Deus, an advanced driver assistance system with artificial intelligence, 5G network, and satellite connection that the Chinese automaker wants to popularize across its entire line of cars.