LONDON, June 2 (Reuters) - A squeeze in investment in Brazil this year will be temporary and investment should pick up over the next few years, the head of the country’s BNDES state development bank said on Monday.
Total investment in Brazil is forecast to rise 28 percent to 4.075 trillion reais in 2014-2017 compared to the 2009-2012 period, BNDES said in May.
“We cannot assume that 2014 is a year that represents a trend,” BNDES president Luciano Coutinho told a press conference in London on Monday.
He said this year was atypical due to elections in October and the prospect of the United States further unwinding its ultra-loose monetary policy.
“The trend we have here is one of growth in the (investment) outlook for 2014-2017.”
Data last week showed Brazil’s economy barely grew in the first quarter as investment dropped.
Fixed investment fell for a third straight quarter, down 2.1 percent from the fourth quarter.
Investment now accounts for 17.7 percent of Brazil’s gross domestic product - one of the lowest rates in Latin America - helping to explain the recent protests in the run-up to the World Cup beginning this month. (Reporting by Ana Nicolaci da Costa; Editing by Kevin Liffey)