Business competitiveness in Brazil grows for the 1st time in 12 years – CNI

Brazil advanced, for the 1st time in 12 years, a position in the ranking of competitiveness among companies. In all, 18 countries participate in the analysis carried out by the CNI (National Confederation of Industry).

In the 2019-2020 results, Brazil was in 17th place, with an average score of 4.0. In the 2021-2022 report, it reached 4.2 points and surpassed Peru.

The criteria adopted to choose the 18 countries were:

• have a level of development similar to that of Brazil;
• compete with Brazil in third markets;
• or have an international insertion similar to that of Brazil and neighboring countries.

The survey considered 9 factors and 59 variables to obtain the overall average score. The survey took into account the following factors:

• labor;
• financing;
• infrastructure and logistics;
• taxation;
• macroeconomic environment;
• productive structure, scale and competition;
• business environment;
• education;
• technology and inovation;

GENERAL RANKING

Despite the progress, Brazil remains in the bottom third of the list – that is, among the last 6 places.

The country’s improvement in several competitiveness factors led to an increase in its average in the overall ranking. According to CNI, there was emphasis on financing, business environment and taxation factors and the greater impact of the pandemic in some countries.

Even with the improvement, the most critical situation in Brazil is the financing factor. The country reduced its economy’s basic interest rate to the lowest level in 20 years: 2% per year in 2020. Even so, it remained with the highest short-term real interest rate (4.7%) and the highest rate spread interest rates (26.8%) among the 18 countries evaluated.

The most competitive economies are: South Korea, Canada, Australia, China, Spain and Poland. Chile is the only case of Latin American economy that is not in the bottom third, being in the middle third, with Thailand, Russia, Turkey, South Africa and Indonesia.

With information from Poder360