- Country fell 18 spots to 75th place out of 140 nations
- Standing declined on weak economic performance and scandal
Brazil fell more than any other country in the latest edition of the World Economic Forum’s Global Competitiveness Index as a widening budget gap and faster inflation make it harder to do business.
Latin America’s largest economy plunged 18 spots to 75th place out of 140 nations in the 2015-2016 edition of the report. It was in the top 50 in 2012.
Brazil’s sovereign credit rating dropped to junk this month after President Dilma Rousseff failed to gain support in Congress for an austerity plan to shore up fiscal accounts. Rousseff has lost political capital as her approval rating drops to a record low, members of her coalition fight accusations of accepting bribes and the worst recession in 25 years fails to damp above-target inflation.
“Brazil’s weak macroeconomic performance is negatively impacting the country’s competitiveness,” according to the report. “Corruption scandals have undermined trust in the institution.”