The best and worst ranked on The World Bank’s latest Doing business report.

BY LATINVEX EDITORS

Brazil, Latin America’s largest economy, improved its ranking in the latest Doing Business report from The World Bank.

However, it still lags Mexico, the region’s second-largest economy.

The 2014 Doing Business report looks at 10 key factors that measure the ease of doing business in a country. They include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

The World Bank changed its methodology compared to last year, so the changes in the ranking reflect a comparison with the previous ranking using the new methodology.

BRAZIL AND MEXICO

Brazil now ranks 116^th worldwide (out of 189 nations) and 10^th in Latin America. Globally, that’s two spots better than last year. In Latin America, that’s five spots better. That means that Brazil’s business environment lags that of countries like Ukraine and Lebanon.

Brazil improved its global rank by 11 spots in the category of resolving insolvency  (from 146^th place to 135^th place) and by one spot in paying taxes (from 160^th place to 159^th place). However, it dropped four spots in the categories dealing with construction permits, registering property and getting credit. And saw no change in the categories of getting electricity, protecting investors, trading across borders and enforcing contracts.

Mexico dropped two spots to 53^rd place, but kept its ranking as Latin America’s fourth-best country.  Globally, Mexico’s business environment barely lags that of Spain.

Mexico improved in the categories trading across borders (up four spots to 59^th place), enforcing contracts (up two spots to 71st place) and dealing with construction permits (up one spot to 40 place). However, it saw declines in the categories of starting a business, registering property, getting credit, protecting investors, and paying taxes. Meanwhile, there was no change in the categories of getting electricity and resolving insolvency.

THE LEADERS

Chile remains the best country in Latin America, while Venezuela again ranks at the bottom.  Globally, Chile ranks 34^th, which means the country has a better business environment than countries like Israel and France.

Peru and Colombia follow in 42^nd and 43^rd places, respectively. That means they outperform European Union countries like Poland and the Slovak Republic.

Guatemala has Central America’s best business environment and improved its ranking by four spots to 79^th place.

THE LAGGARDS

Venezuela among the nine worst countries worldwide, ranking behind countries like Angola and Guinea-Bissau and barely ahead of Myanmar. Haiti ranks behind countries like Niger and Timor-Leste.

In Central America, Honduras has the worst business environment, according to the Doing Business report from The World Bank.

© Copyright Latinvex

Source: 2014 Doing Business, The World Bank