Business · Economy · 6 hrs ago

Brazil investment rate remains below 20% of GDP

Brazil investment rate remains below 20% of GDP

Brazil’s investment rate was 16.1% of GDP in the second quarter of 2026, the latest figure available.

The rate has stayed below 20% since 2014, when Brazil entered a recession.

Investment measures spending on things such as buildings, machinery and equipment that can expand the economy’s ability to produce.

High interest rates make business investment more expensive, while budget limits leave the public sector with little room to invest.

Economists say weak investment can leave the economy with fewer foundations for sustained future growth.

President Lula says his government aims to raise investment above 20% of GDP, working with private companies.

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What people are saying

Luiz Inácio Lula da SilvaPresident of Brazil
one of the government’s main objectives is to raise the country’s investment to more than 20% of GDP, in partnership with the private sector
via Folha
Rodolpho SartoriEconomist at Buysidebrazil consultancy
Investment in Brazil is low. I will not say that rates of 16% or 17% are horrible, because we have had 14% or 15% in some periods. But the level is insufficient for a country that aims to grow sustainably
via Folha
Francisco Pessoa FariaEconomist and partner at Logos Economia consultancy
There is a constraint on the private sector side from very high interest rates, and the public sector in Brazil invests little compared with the world average, because there is no money left
via Folha