Investments are advancing in Brazil and, in the 12-month period, in 2021, they have grown by 17.2%, according to the Institute of Applied Economic Research (Ipea). The data are from the Ipea Indicator of Gross Fixed Capital Formation (FBCF).
GFCF comprises machinery and equipment, civil construction and other fixed assets. The evolution of the indicator represents an increase in the productive capacity of the economy and the replacement of the depreciation of the stock of fixed capital.
Considering only December, the indicator shows a growth of 2.7% in the comparison between December and November 2021, in the seasonally adjusted series. As a result, the fourth quarter ended with a rise of 0.4%. In comparisons with the same periods in 2020, while December registered a drop of 6.4%, the fourth quarter grew 3.4%.
Indicator components
Apparent consumption of machinery and equipment, which corresponds to national production destined for the domestic market plus imports, showed an increase of 9.3% in December, ending the fourth quarter with a high of 3.7%.
National production of machinery and equipment increased 0.5% in December and imports grew 11% in the same period. As a result, imports grew 5.9% in the fourth quarter. National production, in turn, ended the period with a fall of 1.6%. In twelve months, domestic demand for machinery and equipment increased by 23.6%.
Investments in civil construction also increased in December, in the seasonally adjusted series, registering an increase of 0.6%. As a result, the segment recorded an advance of 0.7% in the fourth quarter, ending 2021 with an expansion of 12.8%.
