Business · Economy · 6 hrs ago
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.
Brazil’s investment rate was 16.1% of GDP in the second quarter of 2026, remaining below 20% since 2014.
The rate measures fixed investment in relation to gross domestic product, including spending on construction, machinery and equipment.
Analysts cited high interest rates and limited room for public spending as factors holding back investment.
President Luiz Inácio Lula da Silva said raising investment above 20% of GDP with the private sector was a government objective.
Brazil’s annual investment rate was 16.8% in 2025, according to the national statistics agency.
- Who
- Brazil’s government and private sector. President Luiz Inácio Lula da Silva said raising investment was a government objective.
- What
- Brazil’s investment rate remains below 20% of GDP. It was 16.1% in the second quarter of 2026.
- When
- It has been below 20% since the second quarter of 2014. The latest reported quarterly figure is for the second quarter of 2026.
- Where
- Brazil.
- Why
- Analysts cited high interest rates that make business investment more expensive and budget constraints that limit public investment.
This story does not have two clearly opposing sides.
Brazil’s investment rate reached its historical high of 21.53%.
The annual investment rate reached a series high of 20.9%.
The investment rate fell below 20% of GDP and has remained below that level.
The quarterly rate reached a historical low of 14.3%.
The annual investment rate was 16.8%.
The investment rate was 16.1% of GDP.
- Latest quarterly rate
- 16.1% of GDP in the second quarter of 2026
- Annual rate
- 16.8% in 2025
- Below 20%
- Since the second quarter of 2014
- Historical quarterly high
- 21.53% in the third quarter of 2010
- Historical quarterly low
- 14.3% in the second quarter of 2017
1 source
What people are saying
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
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
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