Investments in Public Works Declined 30% in Brazil with Lula

Public works investments dropped nearly 30% between 2002 and 2003. Large cuts (13.7% in nominal terms and 26.1% in real terms, discounting inflation) were made by the federal, state, and municipal governments in the area of infrastructure.

These cuts chiefly affected highway construction, ports, airports, urbanization of public plazas, and sanitation. Private sector investments in construction also declined, but to a lesser degree (17%).


These data are drawn from the Annual Study of the Construction Industry, 2003, released today by the Brazilian Institute of Geography and Statistics (IBGE).


The study shows that the total value of constructions in 2003 amounted to US$ 29.8 billion (73.8 billion reais), US$ 1.22 billion (3 billion reais) less than in 2002, corresponding to a 17.8% decrease in real terms.


Moreover, government spending on construction represented 12.3% of the Gross Domestic Product (GDP) in 2003, compared with 16.1% in 2002.


For the IBGE’s coordinator of industry, Sí­lvio Salles, the results of the study are consistent with the performance of the economy, which registered a decline in the rate of investments in 2003 and a near-zero GDP growth.


“The 17,8% decrease in construction investments in 2003 was significant, chiefly affecting infrastructure projects, whose main clients are government agencies.


“The justification is that 2003 was a year of transition, the first year of a new Administration, in which the focus was on controlling inflation, and there was a reduction in government expenditures.”


According to the study, private sector investments are concentrated mostly in the area of commercial construction, such as shopping malls and business offices.


The study identified 119 thousand construction firms active in 2003, employing 1.4 million people, who earned an average of US$ 425 per month.


Agência Brasil

Tags:

Ads

You May Also Like

Brazil: European Free Trade Agreement on Track Again

Brazil’s Minister of Foreign Relations, Celso Amorim, reports that Mercosur member-nations have accepted an ...

Brazil Calls Rio +20 Final Text Step Ahead and Accuses the Rich of Being Stingy

The Brazilian minister of Environment, Izabella Teixeira, came out in defense of the Rio ...

Upbeat Finance Minister Sees Brazil Growing 5% in 2006

Latin American stocks were mixed, with Brazilian stocks extending yesterday’s losses in light trading ...

Brazilian Industry Raises Brazil’s 2006 GDP Growth Estimate to 3.7%

The Brazilian National Confederation of Industry (CNI) raised its estimate for this year’s growth ...

Brazil Feeling Consequences of China’s Economic Cooling Down

Latin America’s largest economy, Brazil, is feeling the consequences of China’s moves to rein ...

70% of New Companies Fail in Brazil

Between 2000 and 2006 726,600 companies were established each year, in average, in Brazil. ...

Brazil May Miss Export Target Due to Heavy Rains and Low Oil Prices

Brazil may not reach its US$ 202 billion export target for this year due ...

Brazil Goes to Buenos Aires Asking for UN Votes

Brazil’s ex-Minister of Defense, Ambassador José Viegas, had a meeting with the vice-chancellor of ...

Tunisia Whets Brazilian Entrepreneurs’ Appetite

The promotion of Brazil-Tunisia relations will proceed today in the city of São Paulo, ...

New Brazilian Minister Wants to Create 100,000 New Jobs a Month

Brazil’s new Minister of Labor, Luiz Marinho, who was the president of Brazil’s biggest ...