Cost of capital makes it difficult for companies to grow, says Hugo Tadeu

The high cost of doing business in Brazil has become a growing obstacle for emerging industries and companies in the country. The assessment was made by Hugo Tadeu, director of the Center for Innovation, Artificial Intelligence and Digital Technologies at Fundação Dom Cabral, in an interview with CNN.

The expert commented on the indicators that draw attention in the report prepared by the institution, highlighting two central factors that compromise Brazilian competitiveness - a context in which Brazil fell to 65th place in the 2026 World Competitiveness Ranking.

Cost of capital as the main obstacle

According to Hugo Tadeu, the first important indicator is the cost of capital. "The cost of doing business in Brazil is increasingly high and this has made it difficult not only for industries, but also for emerging companies, to do their business", he stated.

The data collected, both official and business, converge towards this same perspective.

The second indicator highlighted by Tadeu is gross fixed capital formation. For him, industries that would like to invest more and more, aiming for growth, find the cost of capital a complicating factor.

"Linked to the cost of capital, they are saying that this is a hindrance to growth", he highlighted.

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Source: CNN