Brazilian states’ competitiveness: Minas Gerais and Goiás rise, Bahia falls; São Paulo keeps lead

In the 2023 State Competitiveness Ranking by the Public Leadership Center (CLP), Minas Gerais and Goiás experienced marked advancements, securing their best-ever positions. Minas Gerais moved from 8th to 6th place, while Goiás climbed from 9th to 7th.

Contrarily, Bahia experienced the most significant drop, descending from 17th to 24th, only outpacing Roraima, Amapá, and Acre.

The progress in Minas Gerais and Goiás has been attributed to reforms championed by their respective governors.

Despite persisting fiscal challenges, the outlook remains optimistic.

Lucas Cepeda, the Competitiveness Manager at CLP commented, “While both states face fiscal challenges, there’s a clear commitment to address these issues.”

In stark contrast, Bahia’s decline in the ranking was notable.

Out of the 99 metrics assessed by CLP, Bahia only improved in two areas: social sustainability and education.

Most other sectors saw a decline, with human capital dropping a staggering 17 positions. Cepeda expressed surprise at Bahia’s drastic downturn.

São Paulo continues to lead as the most competitive state since the ranking’s inception.

The gap between São Paulo and the second-placed state, Santa Catarina, had been narrowing in previous years.

However, in 2023, São Paulo increased its lead, showing gains in various areas despite a minor setback in public machine efficiency.

The CLP’s State Competitiveness Ranking established 12 years ago, evaluates states using 99 indicators spread over ten distinct categories.

These categories encompass areas such as Infrastructure, Education, Human Capital, and Environmental Sustainability, among others