Brazil’s 2025 Ranking Reveals Shrinking Gaps at the Top and Shifts in Regional Power

Brazil’s Centro de Liderança Pública (CLP) released its 2025 Competitiveness Ranking of states this week in Brasília.

The survey measures all 26 states and the Federal District through 100 indicators, grouped into ten areas such as education, infrastructure, fiscal strength, innovation, and security.

São Paulo remains in first place for the 14th year, but the lead is slipping. Santa Catarina cut the gap to just 1.4 points, the smallest margin yet, showing that São Paulo’s dominance is no longer secure.

Paraná, the Federal District, and Rio Grande do Sul complete the top five. The real story, however, lies in the regional shifts. The Northeast, often seen as Brazil’s lagging region, is moving up.

Rio Grande do Norte jumped eight spots to 16th, while Sergipe rose six places to 12th. Paraíba reached 11th, the highest in the Northeast, thanks to investments of around R$ 481 million in research, scholarships, and technology projects.

Among them is the Radiotelescope Bingo, the largest in Latin America, built with international partners. Other states show contrasting strengths.

Rio Grande do Sul leads in innovation and government efficiency. Espírito Santo tops fiscal solvency. Santa Catarina performs best in security and human capital.

Yet the North struggles: Amazonas fell from 11th to 17th, Pará from 21st to 25th, underlining the structural difficulties of states rich in natural resources but weaker in infrastructure and public services.

Security remains the Achilles’ heel nationwide. Average scores have fallen for three years. The 2025 ranking added a new indicator for femicide. Amapá, Sergipe, and Ceará recorded the lowest rates, while Piauí, Mato Grosso do Sul, and Mato Grosso had the highest.

Sanitation also lags. The law requires universal water coverage and 90 percent sewage treatment by 2033, a goal many states remain far from reaching. The broader picture is clear. Competitiveness in Brazil is becoming more regionalized.

The Northeast is proving it can climb the table with targeted investments, while the North is losing ground due to weak infrastructure and sustainability setbacks. São Paulo still leads, but with Santa Catarina closing in, the country’s economic map may shift faster than expected.