Rio - The crisis in Argentina and presidential elections in Brazil were cited in a survey by the government statistical bureau (IBGE) as reasons for reduced investments by Brasilia in public works in 2002. The results of the Annual Survey of the Construction Industry 2002 was released on Friday and shows that between 1996 and 2002 spending in heavy construction dropped almost 10%, with the biggest cuts in highway maintenance.

According to Alexandre Brandão, of the IBGE, electricity rationing in 2001 affected heavy construction of power plants, highways and other infrastructure projects. "Add the crisis in Argentina and domestic elections to the mix and you got a recipe for a downturn in government expenditures," said Brandão, adding that although there was no recovery in 2003, the outlook for 2004 is for renewed investments by both the government and the private sector.

Agência Brasil
Reporter: Cristiane Ribeiro
Translator: Allen Bennett
08/30/2004