Brazil Ranks Just Above Venezuela in Global Government Efficiency

Brazil now sits just above Venezuela in a global ranking of government efficiency, according to the 2025 Global Competitiveness Ranking by the International Institute for Management Development and Fundação Dom Cabral.

Out of 65 countries, Brazil ranks 62nd, while Venezuela holds the last spot. This ranking uses official data and business surveys to measure how well governments manage their economies and serve their people.

Brazil’s government spends a lot—38.3% of its GDP in 2022—but much of this money goes to pensions and public worker salaries. Only a small share funds investment in things like roads, schools, and hospitals.

The International Monetary Fund reports that Brazil invests just 1.5% of its GDP in public projects, which is about half the average seen in richer countries.

The country’s tax system also creates problems. Businesses in Brazil spend about 1,500 hours each year just to handle taxes, which is one of the highest numbers in the world. This makes it expensive and complicated to run a business.

Brazil’s Structural Challenges Threaten Long-Term Growth

Brazil also protects its local industries with high tariffs and other trade barriers. While this can help some businesses in the short term, it keeps prices high for consumers and blocks access to new technology.

Over time, this makes it harder for Brazil to compete with other countries. Education is another challenge. Just over half of adults in Brazil have finished basic schooling, and only about one in five has a college degree.

This means many workers do not have the skills needed for today’s jobs, which slows down the economy. Attempts to fix these problems have not worked well.

In 2024, almost 500 companies pushed back against a plan to raise public funds, and Congress rejected it. Many business leaders worry that the government does not spend wisely or manage money well.

Brazil’s economy is expected to grow by 2.1% in 2025, but deep problems remain. High spending, complex rules, trade barriers, and weak education keep the country from moving up in the rankings.

These issues matter because they make it harder to create jobs, attract investment, and improve living standards for ordinary people. Brazil’s position, just ahead of Venezuela, shows how much work remains.

Without big changes, Brazil risks staying near the bottom of the list, missing chances to grow and improve life for its citizens.