The Brazilian government expects private investment of 78 billion reais ($15 billion) in infrastructure this year, up 95% from 2021. The forecast supports the government's expectations that economic growth will beat market forecasts slightly.
For your information, the government has estimated economic growth of 2.1% this year, mainly due to increased private investment and an improving labor market. However, economists projected an expansion of only 0.3%.
The Secretariat of the Ministry of Economic Policy (SPE) also said that the estimate already includes investments agreed under public-private partnerships, which amounted to around 40 billion reais last year.
"This is a very welcome increase and it will have an impact, it is a strong value," said Secretary of Economic Policy Adolfo Sachsida.
In total, the SPE said investors had committed about 1.3 trillion reais in long-term investments in public-private partnerships, with 360 billion reais coming from 2022 to 2025.
The figure does not include the privatization of electricity company Eletrobras, which the government wants to remove from state control this year by selling enough new shares to liquidate its current controlling stake.
"I think we're going to have a better year than most people expect," Sachsida said.
The ministry will review macroeconomic forecasts in mid-March, and the secretary said that if necessary the government could raise or lower its economic outlook.
