Progress in productive investments has helped Brazilian GDP, says economist

In addition to the strong contribution of the service sector to the post-pandemic economic recovery, the productive investments in Brazil were an important part of Brazilian economic performance in the first half of 2022, according to José Márcio Camargo, chief economist at Genial Investimento.

“More important than the resumption of services, in our opinion, is the systematic increase that has been registered in the rate of investment in the Brazilian economy since the country began to implement, in 2016, a set of constitutional reforms,” he said in an interview. to CNN this Thursday (1st).

For the economist, measures such as labor reform, liberalization of outsourcing, the end of the TJLP, the new regulatory frameworks, the pension reform and the autonomy of the Central Bank are beginning to take effect.

The investment rate in the economy, which was 15.5% of GDP (in the first quarter of 2019), today stands at 18.7% of GDP. “In our opinion, this is what is generating long-term growth in the Brazilian economy,” he says.

In the first half of this year, the GDP grew 2.5% compared to the same period of the previous year, according to a release made by the IBGE this morning. In the second quarter, the increase was 1.2% compared to the first three months of the year.

The quarter’s result is the fourth positive in a row and brings a rise of 1.3% in services —a sector that represents 70% of GDP— and of 4.8% for investment measured by Gross Fixed Capital Formation, helped by the activities of construction and information and communication.

See full interview in the video.

*Posted by Ligia Tuon