IPEA indicator shows 27.5% drop in investments in April

The Institute of Applied Economic Research (Ipea) announced, on Monday (8), a drop of 27.5% in the Ipea Monthly Indicator of Gross Fixed Capital Formation (FBCF), in April, compared to March this year. Compared to the same period last year, there was a decrease of 32.8%. The Fixed Capital Gross Formation Indicator measures investments in increasing the productive capacity of the economy and replenishing the depreciation of its fixed capital stock. Although investments grew 0.2% in the accumulated in 12 months, the result shows the economic impact of the Covid-19 pandemic. The mobile quarter ended in April closed down 11%. FBCF is composed of machinery and equipment, civil construction and other fixed assets. In April, there was a 39.4% drop in investments in machinery and equipment, compared to March. The national production of these goods decreased by 43.4%, while imports fell by 27.6%. Construction also showed a negative result in April (-19.6%), as well as other fixed assets (-15%). Compared to April 2019, the drop in investments reached all segments: machinery and equipment (-46%), civil construction (-25.6%) and other fixed assets (-19.1%).