The Competitiveness Indicator, a study conducted by Brazil’s Federation of Industries of the State of São Paulo (Fiesp) and released Thursday, September 22, ranked Brazil 39th among the world’s 43 most competitive countries. The study was based on data from 2003.
Brazil appears alongside India (41st), Colombia (40th), Venezuela (38th), the Philippines (37th), and Mexico (36th), countries which are low in competitive capacity, according to the study. Worse than Brazil only Colombia, India, Turkey and Indonesia.
Argentina (31st), Portugal (29th), and China (28th) were considered countries with medium competitive capacity. Hong Kong (14th), South Korea (17th), France (18th), and Spain (22nd) represent countries with satisfactory competitive capacity. The United States and Sweden head the list.
The classification was based on such factors as domestic economic performance, infrastructure investments, technology, education, and health. The degree of receptivity to foreign capital, fiscal policy, the cost of capital, and entrepreneurial productivity were also taken into account.
“The cost of capital is the chief factor responsible for Brazil’s 39th position in the ranking, together with the heavy tax burden and low investments. If we want to continue growing at the rate of 5%, we must raise our investments to the equivalent of 25% of the Gross Domestic Product (GDP),” observed the director of the Fiesp’s Department of Competitiveness and Technology, José Ricardo Roriz Coelho.