News



The 16 biggest obstacles to doing business
in Brazil

Published by Exame magazine in 10/01/2017

Author: João Pedro Caleiro

Labor restrictions went from 6th to 3rd position, while tax regulation dropped from 3rd to 7th, according to a survey by the World Economic Forum.

 

The level of taxes remains the greatest difficulty in doing business in Brazil, according to the latest edition of the World Economic Forum’s competitiveness report.

Corruption jumped from 3rd to 2nd place in comparison with the previous survey, which is not surprising considering that Brazil ranked last in the world in confidence in the political class.

Labor restrictions went from 6th to 3rd position, while tax regulation dropped from 3rd to 7th step.

The result is the result of an opinion survey answered by about 200 executives, managers and local investors.

Combined with other statistical data, it forms a general ranking that measures the competitiveness of 132 countries in 12 pillars.

Brazil stopped falling in the general ranking for the first time since 2012 and gained a position, rising from 81 to 80 in the world.

As the survey was carried out in 2016, it does not yet capture the approval of reforms or the signs of resumption of economic activity, but it already brings changes in perception related to the post-impeachment and investigations against corruption.

The country advanced 11 countries in the Institutions pillar, despite being still among the lowest places in the world, and had a small relative recovery in macroeconomic environment.

See the 16 worst factors for doing business in Brazil today, in order and with the score of each, according to the survey with executives:

  1. Tax level (18,6)
  2. Restrictive labor regulations (12.5)
  3. Corruption (12.3)
  4. Inefficient government bureaucracy (12)
  5. Inadequate infrastructure supply (10.4)
  6. Policy instability (7.4)
  7. Complexity of tax regulations (5.4)
  8. Access to finance (5.2)
  9. Policy instability / coups (4.2)
  10. Poorly educated workforce (4)
  11. Inflation (2.1)
  12. Crime and theft (1,9)
  13. Insufficient capacity to innovate (1.8)
  14. Weak work ethic in the workforce (1.1)
  15. Poor public health (1.1)
  16. Foreign currency regulations (0.2)