Brazil ranks 127th in the 2023 ranking of economic freedom, with a score of 53.5, according to the Heritage Foundation’s Index of Economic Freedom, falling behind countries such as Bangladesh, Nicaragua, Niger, Ghana, and Bhutan.
The data was published in a report released on Monday (27).
Although the score is essentially unchanged from the previous year, the country is ranked 26th out of 32 countries in the Americas region, with its overall score below the regional and world averages.
According to the entity, a free economy is essential for a better economic scenario.
However, Brazil still faces challenges such as corruption and low property rights rates.
The report highlights that Brazil is the fifth largest economy in the world and the largest in Latin America, with mineral resources, having the largest rainforest in the world.
As for the rule of law, Brazil shows weaknesses, with its property rights score below the world average and its government integrity score below the world average.
Regarding the size of the government, the tax burden is 31.6% of GDP, with a top tax rate of 27.5% for individuals and 34% for corporations.
Average government spending and the three-year budget balance are 38.7% and -7.9% of GDP, respectively. Public debt is 93.0% of GDP.
In regulatory efficiency, despite some advances, organizing new investments and production is still a bureaucratic and costly process.
Opening or closing a business is still expensive and time-consuming.
Restrictive labor regulations continue to hamper employment and productivity growth, says the report published on Monday (27).
With information from Brasil Sem Medo