Happy Friday! Today, Brazil fares terribly in industry ranking. The government hits a snag in its plan to free up budget space. A solid start for Brazil’s 5G auction.
A costly country for industries
Consultancy firm KMPG launched a new report assessing the costs of manufacturing goods in 17 countries from Europe, Asia, and the Americas. The ranking accounts for political risks, primary and secondary costs, availability of resources, and labor-related issues. This issue of the report included Brazil for the first time — and the country ranked as the most expensive on the list for goods manufacturers.
- “Countries that do well on primary factors do less well on the secondary factors and vice versa. The clear exception appears to be Brazil, which ranks poorly on both indices,” says the report.
Why it matters. According to KMPG, Brazil’s attraction for industries has eroded over time, which could accentuate the ongoing process of deindustrialization observed in Latin America’s biggest economy.
By the numbers. Yesterday, official statistics agency IBGE released industrial production data from September, showing a 0.4-percent drop from August and extending the negative streak to four months. In 2021, growth was only observed in January and May.
- With the results,...