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 industries and nascent 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.

Capital cost as the main obstacle

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

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

The second indicator pointed out by Tadeu is gross fixed capital formation. For him, the industries that would like to invest more and more, aiming for growth, can be found in .

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

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