Rio, June 29, 2004 (Agência Brasil) - The Brazilian economy's investment rate was 19.3% in the first quarter of 2004, higher than the levels registered in all four quarters of last year, when the rates were 18.7%, 17.2%, 18.1%, and 18.2%, in chronological sequence. These results appear in the Quarterly National Accounts released by the Brazilian Institute of Geography and Statistics (IBGE).

The IBGE's Director of National Accounts, Carlos Sobral, said that the increase in the investment rate as a proportion of the Gross Domestic Product (GDP) "reflects the recovery of the country's economy, but the current investment level needs to go up in order to guarantee the 3.5% economic growth rate projected for this year," he emphasized.

In Sobral's opinion, a 25% investment rate would be reasonable for the country's growth to be continuous and sustainable. The IBGE specialist cited the example of China, where the investment rate last year was 47%. He recognized, however, that "the situations are different, and what is most important is to maintain the upward trend in investments in the country."

Translator: David Silberstein