Country Overview
Brazil's regulatory environment supports the creation of businesses and provides a high level of protection for insolvency. This promotes competition between suppliers which, coupled with a resilient financial sector, helps to attract capital supply for infrastructure projects. The funding capacity of the Brazilian government together with slow economic growth indicate potential challenges in publicly funding future major infrastructure projects.
See Full Overview Data
GDP per capita
8,797 USD
Population
210.0 million persons
Infrastructure quality
65.5 (0-100 best)
Infrastructure investment
2.9% of GDP
Private infrastructure investment
3,656 5-year average, USD millions
Infrastructure gap
1.8% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
46
2
50.2
43
10
69.2
49
3
66.8
38
13
74.8
57
12
23.4
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

46
2
50.2
Contender
49
4
55.6
Aspiring
43
10
69.2
Contender
49
3
66.8
Aspiring
38
13
74.8
Contender
57
12
23.4
Aspiring
53
-
26.9
Aspiring
34
1
39.6
Contender

Metric Overview

Strengths

Cost to start a business

According to the World Bank, the average cost of starting a business is 4.2% of income per capita, substantially lower than the Americas average of 31.4% of income per capita. Brazil is the second cheapest Americas country in which to start a business, trailing only Chile (at 2.7% of income per capita).

Financial stability

Despite the recent recession, Brazil's financial sector has remained resilient. The International Monetary Fund notes that Brazil has prudent lending standards, high interest margins and fees that support profitability and help banks to remain liquid. The long-term impact of the COVID-19 pandemic is a concern.

Strength of insolvency framework

Brazil has a solid framework for reorganisation and bankruptcy which governs formal insolvency. This ensures investors have appropriate protection and helps attract investment for potential infrastructure projects.

Cost to start a business

According to the World Bank, the average cost of starting a business is 4.2% of income per capita, substantially lower than the Americas average of 31.4% of income per capita. Brazil is the second cheapest Americas country in which to start a business, trailing only Chile (at 2.7% of income per capita).

Financial stability

Despite the recent recession, Brazil's financial sector has remained resilient. The International Monetary Fund notes that Brazil has prudent lending standards, high interest margins and fees that support profitability and help banks to remain liquid. The long-term impact of the COVID-19 pandemic is a concern.

Strength of insolvency framework

Brazil has a solid framework for reorganisation and bankruptcy which governs formal insolvency. This ensures investors have appropriate protection and helps attract investment for potential infrastructure projects.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Upper middle income country average

Financial markets:
Financial stability

Regulatory frameworks:
Strength of insolvency framework

Opportunities to Grow

Market sounding and/or assessment

According to the World Bank, there is no regulated requirement to undertake market soundings in Brazil. Adding one could allow the government to determine if there is an interest from investors and lenders to provide commercial financing for projects.

Dealing with construction permits

According to the World Bank, in Brazil it takes 338 days to obtain a construction permit, one of the longest timeframes among InfraCompass countries. Expediting this process could significantly impact investment in infrastructure by helping to reduce delays.

Environmental impact analysis

According to the World Bank, Brazil does not have a standardized requirement for environmental impact assessment. However, Brazil has policy guidelines and a systematic framework in place to determine and mitigate the potential environmental impact of all new infrastructure developments through its planning process, and a environmental assessment of all PPP projects are mandatory by law.

Market sounding and/or assessment

According to the World Bank, there is no regulated requirement to undertake market soundings in Brazil. Adding one could allow the government to determine if there is an interest from investors and lenders to provide commercial financing for projects.

Dealing with construction permits

According to the World Bank, in Brazil it takes 338 days to obtain a construction permit, one of the longest timeframes among InfraCompass countries. Expediting this process could significantly impact investment in infrastructure by helping to reduce delays.

Environmental impact analysis

According to the World Bank, Brazil does not have a standardized requirement for environmental impact assessment. However, Brazil has policy guidelines and a systematic framework in place to determine and mitigate the potential environmental impact of all new infrastructure developments through its planning process, and a environmental assessment of all PPP projects are mandatory by law.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Upper middle income country average

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
46
2
50.2
- No ranking change Ranking increase Ranking decrease

Metric

Brazil

Upper middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

18.2 (+2.4)
37.7

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

44.4 (-2.4)
45.1

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

46.7
40.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

44.0 (+0.3)
46.1

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Brazil

Upper middle Income Countries Average

18.2 (+2.4)
37.7
44.4 (-2.4)
45.1
Yes
-
46.7
40.2
44.0 (+0.3)
46.1
Yes
-

Country Overview Data

Brazil's regulatory environment supports the creation of businesses and provides a high level of protection for insolvency. This promotes competition between suppliers which, coupled with a resilient financial sector, helps to attract capital supply for infrastructure projects. The funding capacity of the Brazilian government together with slow economic growth indicate potential challenges in publicly funding future major infrastructure projects.
GDP per capita

8,797 USD

Population

210.0 million persons

Infrastructure quality

65.5 (0-100 best)

Infrastructure investment

2.9% of GDP

Private infrastructure investment

3,656 5-year average, USD millions

Infrastructure gap

1.8% of GDP

GDP

1,847 USD billion

GDP growth rate

0.9%

GDP per capita growth rate

-1.8%

Gini coefficient

53.3 (0-100 worst)

Gross Government Debt

92.0% of GDP

Inflation rate

3.8%

Summary credit rating

42.0 (0-100 best)

Unemployment rate

12.2%

Urbanisation ratio

87.0% of total population

Road connectivity

76.1 (0-100 best)

Quality of road infrastructure

3.0 (1-7 best)

Efficiency of train services

2.5 (1-7 best)

Efficiency of air transport services

4.4 (1-7 best)

Efficiency of seaport services

3.2 (1-7 best)

Electricity access

99.7% of population

Electricity supply quality

16.1% of output lost

Exposure to unsafe drinking water

9.7% of population

Reliability of water supply

4.7 (1-7 best)

Digital Adoption Index

0.7 (0-1 best)

Mobile-broadband subscriptions

88.1 per 100 population

Fixed-broadband Internet subscriptions

14.9 per 100 population