24hoursworld

Bad: investment does not react and suffered an annual drop of 23.4% in May

Bad: investment does not react and suffered an annual drop of 23.4% in May
Bad: investment does not react and suffered an annual drop of 23.4% in May

In the last five months, investment numbers are still very low. What is the expectation with the RIGI?

Freepick

Despite the expectation of the investors with the arrival of a Government of different political signs, the numbers for now do not seem to respond in the same way when it comes to the real economy.

According to the IBIM-OJF prepared by the consulting firm Orlando Ferreres & Associatesin May there was a investment drop of 23.4% year-on-year measured in terms of physical volume (without taking into account the effect of inflation), accumulating a contraction of 21.1% for the first five months of the year. When measured in dollars, an investment of US$6,692 million per month is estimated.

What was the performance of the investments according to the sector?

  • Machinery and equipment: Investment in machinery and equipment registered a contraction of 23.0% in the annual measurement during May, accumulating a decrease of 16.5% for the first five months of the year. In detail, imported equipment registered a drop of 33.2%, while that of national origin fell 9.8%.
  • Construction: Investment in the construction sector contracted 23.7% during May in the annual comparison, continuing the slowdown of the fall compared to the rates of the last two months, but remaining at a very low level. In accumulated terms, the fall in the sector is 24.8% for the first four months.

“As in the previous months of the current year, during the fifth month the investment figures were very badrecording a fall of 23.4% in the annual measurement, and a contraction of 29.7% if we compare it with the highest point in the series, which occurred at the end of 2017,” the consultancy’s document began.

Investments: what is the expectation with the RIGI

“In the sectoral detail, the sharp drop in imports of durable production equipment, while construction shows a very slight slowdown in its decline. Moving forward, our focus is on the effectiveness of the Large Investment Incentive Regime (RIGI), which will come into effect in the coming months. In any case, the new regime alone will not be enough, and The government must consolidate the macro figures, and offer a predictable and reliable political and economic context to attract new investments,” he concluded.

orlandoferreres.PNG

For Orlando Ferreres, the macro perspectives still need to be consolidated to see a change in investments

For Orlando Ferreres, the macro perspectives still need to be consolidated to see a change in investments

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts