LatinNews Daily - 26 February 2020

* Brazilian daily Folha de São Paulo has found that investment by Brazil’s 27 state governments (including the Federal District) fell by 24.4% in 2019 to R$27.6bn (US$6.29bn), down from R$36.5bn (corrected for inflation) in 2018. Folha notes that this decrease in public investment comes despite increased tax revenue by states and a more favourable economic scenario, but conforms to a cyclical pattern of investment peaks in election years (such as 2018), followed by a dip during the first year of new or re-elected state governments’ four-year terms. Only four state governments saw a marginal increase in investment last year. Of the ten states which invest the most as a proportion of their revenue, six are in the north-east region, whereas the wealthier south and south-east regions present lower proportions of investment and a pattern of decreased investment (with the exception of Rio de Janeiro and Minas Gerais, which saw a marginal increase in public investment from 2018 to 2019).

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