Bad infrastructure means higher costs

The consequences are immense.

The problem could get even worse in the near future. According to Fabio Bentes, head economist at the National Confederation of Commerce, however, they are far from bringing the cost of credit in Brazil down to “civilized levels.”

Presidential decrees or ministerial orders would be able to reshape the microenvironment and make it easier to invest in the country, making way for more substantial changes.

But infrastructure does not only mean roads and railways for agribusiness production. As the country’s agricultural frontier expands towards the Northeast and North regions, the costs to transport produce all the way to consumer markets and ports in the Southeast are likely to become higher.

According to Bloomberg, Brazilian drivers use on average 203.43 liters a year, which eats up 2.5 percent of their salary.

Find out what is the real equivalent in Brazil of your current salary and improve your chances of a happy relocation. Despite the problems related to urban life, Goiânia still remains as a referent in terms of quality of life.

The striking difference is that Brazil taxes its citizens as if it were a nation of the global North, but does not provide services to the same extent nor with similar standards as its counterparts.


The average rate on deals closed in May was 25 percent per year, 31.4 percent for families, and 15.8 percent for companies. The city has the third urban network in Brazil, only behind São Paulo and Rio de Janeiro.

Although Brazil’s benchmark rate was brought down to a historic low of 6.5 percent/year last March, the latest data from Brazil’s Central Bank shows that interest rates in the country remain high.

For Mr. Bentes, the solution has to do with the optimization of the Brazilian state. Its for that reason that they are often regarded as the coolest people in the world.

High interest rates, expensive financing

Differently from major metropolitan areas from the Southeast, João Pessoa offers a great quality of life and is also a coastal city, with beautiful beaches and green areas. What is often forgotten is that Brazil is a very large country, with several other state capitals where it is possible to live with a good quality of life. The average rental price for a two-bedroom apartment in an upscale neighborhood is of BRL 948,71 and of BRL 549,23 in a more affordable area. The complexity of the Brazilian tax system is a problem in itself.

In recent years, transportation accounted for nearly 60 percent of total logistics costs for businesses in the country, according to the WEF. Collective robbery, kidnapping and armed robbery is common everywhere in the city, including upscale neighborhoods.

But for that to happen, macro and business environments must be attractive enough for private enterprises.

On top of this list, entrepreneurs also face other bumps along the way. Read the full story NOW! The ICMS rate in the state ranges from 12% to 25%. The complexity of the Brazilian tax system is a problem in itself.

Family of four estimated monthly costs: R$ 10,128; Single person estimated monthly costs: R$ 4,394; Brazil is the 3rd cheapest country in Latin America (13 out of 15) Cost of living in Brazil is cheaper than in 85% of countries in the World (63 out of 74) Sorry, your browser does not support the technologies needed to use our web interface.

Brazil costs $1,061 per month to live and work remotely. The average price for a cesta básica in João Pessoa is of BRL 235,85.

In 2017, Brazil fell 17 positions in Transparency International’s corruption ranking, down to 96th. Price hikes in Brazil are explained by a multitude of reasons, from a sheer lack of infrastructure to high levels of taxation and corruption. But with public accounts far from being rosy, partnerships with the private sector seem to be the only feasible way out. Energy costs also play a big role in that sense, as they account for a large portion of industrial production costs.

As Mr. Souza Júnior puts it, all this money is somehow incorporated into businesses’ investment decisions, resulting in pressure for higher prices. Price hikes in Brazil are explained by a multitude of reasons, from a sheer lack of infrastructure to high levels of taxation and corruption. It is the Brazilian city with the higher rate of green area per inhabitant in Brazil. To make matters worse, Brazilian politicians are known for their short-sightedness and penchant for favoring organized lobbies – which drains vast sums of money every year.

However, this conventional route of fiscal discipline and investment attraction depends mostly on the outcome of the presidential elections in October.