n the week that the Brazilian government announced a package of benefits to the productive sector, a study released by consulting firm KPMG shows that the Brazilian industry needs more than stimulus measures. According to the study, Brazil is the most expensive place to do business, among the emerging countries which have shown high economic growth. In practice, the KPMG survey showed that Brazil is less competitive in terms of costs for companies in China, India, Russia and Mexico and in need of structural reforms to improve competitiveness.
The survey “Competitive Alternatives” KPMG rose 26 items relevant to the business environment as a cost of hand labor, taxes, rental properties, among others. The survey also clears data not related to costs that influence the competitive ability of countries such as demographics, education, working conditions, application of innovation and infrastructure. In Brazil, were calculated information in the cities of Sao Paulo and Belo Horizonte.
The study showed that the UK and Holland, among the developed countries were classified as low-cost leadership, where it is expedient to do business. The United Kingdom has jumped from fourth place in 2010 to the first position in the ranking this year, driven by a combination of lower costs of manpower in the post-recession, cost of lower industrial and efficient public services. The government also promoted tax cuts for corporations. The devaluation of sterling against other currencies due to the European debt crisis, has further improved the country’s competitiveness.