In the Press
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Intentions To Invest As Announced By Companies To The Press, Total |
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BRAZIL: NEW RHYTHM
Can we grow 5%?
According to Simonsen Associados consultants, from São Paulo, Brazilian GDP has a 4,8% growth potential this year, a respectable rate anywhere in the world. (Notice that official forecasts do not exceed 4,5%).
Different from what had been occurring until last year, announcements of investments by telecommunication companies lost their lead to those of energy and electricity and gas services.
Brazilian private companies announced more than their foreign peers. The score was US$147 billion against US$118 billion, reversing the relationship observed in 1999, when 58% of the investment announced was made by foreign companies.
When foreign intentions are analyzed, European Union companies are the leaders. They intend to invest US$44 billion, against US$33 billion announced by the Americans. However, if taken alone, the US leads, followed by Spain (US$11 billion) and Portugal (9 billion).
The regional distribution of the new intentions to invest is also changing. The poorer regions of the Country – North, Northeast and Midwest - are attracting a bigger share. The Southeastern states, which accounted for 64% of the total between 1995 and 1999, had 56% last year. At the same time, the Midwest almost quadrupled its share, with 7,4%. The North doubled its share, increasing it to 5,4%.
Simonsen Associados consultants say that the country is expected to receive US$265 billion in investments.
Energy led the ranking of intentions to invest
Investments announced by both Brazilian and Foreign companies, during the first quarter, added up to US$ 54.2 billion, according to the survey by Simonsen Associados.
This total value, announced from January through March, is equivalent to the average for the period 1995 – 2000, US$ 55.2 billion.
Of all 537 announcements, foreign companies took the lead again, with 55.9% of value.
Energy led the ranking of intentions to invest, accounting for 32.2%.
MULTINATIONALS BET ON BRAZIL’S RECOVERY
"Without a doubt, the Brazilian economy has embarked on a phase of strong investment," says Harry Simonsen, Jr., president of Simonsen Associados, which has monitored investor sentiment since 1989.
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INTENTIONS TO INVEST AS ANNOUNCED
BY COMPANIES TO THE PRESS, TOTAL©
(GUS$)
Source: SIMONSEN ASSOCIADOS Data Bank, Major Newspapers and Magazines
© Simonsen Associados.
Copyright ©2001 SIMONSEN ASSOCIADOS - Brasil
