Latin America Competitiveness: Brazil Falls, Mexico Improves

Mexico and Colombia improve their competitiveness rankings amidst regional decline.

BY LATINVEX STAFF

Brazil's global competitiveness ranking fell sharply -- from 57th to 75th place -- while Mexico moved up four spots to 57th place, according to the latest Global Competitiveness Index from the World Economic Forum. 

Brazil’s score fell from 4.33 last year to 4.08 this year, the worst decline among the 18 countries in Latin America.

However, Brazil was not alone in seeing a deterioration in competitiveness. Nine other countries also saw their score fall the past year, according to a Latinvex analysis.

Only six countries improved their score, while Argentina kept its score. Meanwhile, Ecuador was again added this year after being excluded from last year’s index.

As a result, the average score for Latin America fell 0.03 to 4 points, according to a Latinvex calculation of 18 countries.

Mexico’s score improved by 0.02, which was the fifth-best improvement in Latin America.

Colombia fared even better, boosting its score by 0.05 to 4.28 points, the second-best improvement in Latin America. As a result, Colombia jumped up five spots globally. In Latin America it now ranks as the fifth-most competitive economy, up two spots from last year.

Meanwhile, Honduras was the country that saw the strongest improvement in Latin America. Its score improved 0.13 to 3.95, leading it to jump up 12 spots globally and one spot in Latin America.  

Other countries that improved their score were Uruguay and the Dominican Republic.

Chile remains the most competitive country in Latin America, but has seen its score decline in recent years. This year the score fell by 0.02 to 4.58 points.

Panama and Costa Rica remain the second- and third-most competitive economies in Latin America despite also seeing declines in their scores.