Brazil has dropped to 65th place [1] in the global competitiveness ranking for 2024 [1].
This decline highlights a systemic struggle to attract the investment necessary for industrial growth and employment. When the cost of borrowing remains high, domestic companies cannot scale their operations or modernize infrastructure to compete with international peers.
Analysts Lucinda Pinto of CNN Brasil and Hugo Tadeu of Fundação Dom Cabral said the high cost of capital is the main problem preventing Brazil from competing internationally [1]. The ranking shows that Brazil fell seven positions [2] compared to its 2025 standing [2].
According to the analysts, this financial burden reduces the ability of the country to attract foreign investment and generate new jobs [1]. The cost of capital acts as a ceiling on economic expansion, making it difficult for businesses to take risks or invest in long-term projects.
While other factors contribute to national productivity, the specific pressure of capital costs remains the chief obstacle. The drop in the global ranking reflects how these financial hurdles translate into a loss of relative standing among other nations [1].
“Brazil has dropped to 65th place in the global competitiveness ranking.”
The decline in Brazil's competitiveness ranking suggests that monetary conditions are offsetting other potential economic gains. By failing to lower the cost of capital, Brazil risks a cycle of underinvestment that prevents the creation of high-quality jobs and leaves its industries vulnerable to more efficient global competitors.
