GDP growth is not constant due to lack of productivity, says Bueno

Brazil fell seven positions in the 2026 World Competitiveness Ranking and now occupies 65th place, the worst result in recent years.

The performance follows the loss of productivity in the economy: in the first quarter, productivity measured by hours actually worked fell 0.5% in the annual comparison, according to FGV.

In an interview with CNN Money, columnist Gilvan Bueno stated that Brazilian GDP growth has not been supported by productivity gains.

According to Bueno, the expansion of the economy depends, to a large extent, on commodities and specific stimuli, such as income transfer programs, release of FGTS and tax incentives.

"Brazil has a GDP that is growing, but not due to a productive force", he stated.

In Gilvan's assessment, the structure of the Brazilian economy helps to explain this scenario. Currently, around 70% of GDP is made up of the services sector, between 20% and 25% of agriculture and just 5% of industry. Furthermore, a large proportion of jobs are concentrated in lower-paying activities.

IBGE data cited by the columnist shows that only 5% of Brazilians receive more than five minimum wages, while a large part of the population faces financial difficulties and high debt.

For Gilvan Bueno, the country's low competitiveness is the result of structural problems involving education, taxation, access to credit and the business environment.

According to him, in addition to investing more, Brazil needs to improve the quality of investments in education and reduce barriers to entrepreneurship, such as bureaucracy and the difficulty in obtaining resources.

The columnist also highlighted that the country has relevant opportunities in strategic areas, such as the generation of renewable energy, especially wind in the Northeast.

In his assessment, the challenge lies in transforming these competitive advantages into a long-term project capable of boosting productivity, creating new production chains and retaining talent in the country.

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Source: CNN