Performance overview: Brazil
In the context of negative terms of trade shocks and political turmoil, Brazil falls six positions to 81st. This is driven mainly by deteriorating goods, labor, and financial markets. On the institutional side, security has deteriorated and also the perception of the quality of public-sector administration. However, Brazil has improved in areas such as protection of property rights and measures of undue influence, and the country’s bounce back after a sharp drop last year probably reflects the fight against corruption and for judicial independence. The political uncertainty and the government’s sinking finances are still impediments to consolidating a pro-growth competitiveness agenda in the largest economy in Latin America and the Caribbean. Brazil is currently going through a recession. The country’s growth rate has decelerated steadily, from an average annual growth rate of 4.5 percent between 2006 and 2010 to 2.1 percent between 2011 and 2014, according to the World Bank, and negative growth is projected for 2015 and 2016. Addressing the macroeconomic imbalances facing the country, including large current account and government deficits and increasing inflation, requires improving productivity, starting with the macroeconomic environment and addressing the market distortions affecting how markets work.