Brazil Falls to 65th in IMD World Competitiveness Ranking

Overview

• The IMD World Competitiveness Yearbook 2026 places Brazil 65th out of 70 economies, down from 58th in 2025 and marking the country's weakest recent showing.
• All four IMD dimensions fell: economic performance to 36th from 30th, government efficiency to 69th from 68th, business efficiency to 67th from 56th, and infrastructure to 61st from 58th.
• Business efficiency saw the largest single-year drop, losing about 11 places as the report highlights weaker management, lower productivity and reduced innovation.
• The report flags two acute bottlenecks: Brazil ranks last on cost of capital, making long-term investment expensive, and last in primary and secondary education, undermining future workforce skills.
• The finding raises immediate policy stakes because proposed labor changes such as ending the 6x1 work schedule have business groups warning of higher costs for small firms and risks to investment and productivity.