Custo Brasil now includes crime and real interest in new methodology

The business environment in the country will take on a more realistic picture starting on November 18th, when the new Brazil Cost estimate will be released in São Paulo. According to Revista Oeste, the initiative is led by MBC and Monitor Deloitte, who decided to reformulate the methodology to more accurately capture the structural obstacles that affect national competitiveness.

The main change announced is the reorganization of the indicators, which will be reduced from 12 to seven thematic axes. According to Revista Oeste, the reformulation seeks to provide greater clarity to the factors that make production and economic activity more expensive, reflecting more directly the challenges faced by companies and entrepreneurs in their daily lives.

Among the new features, public safety gains its own category within the survey. As Revista Oeste found, this new axis will consider critical aspects such as urban violence, the incidence of cargo theft and the expansion of illegal markets, historical bottlenecks that erode margins and increase operational expenses.

Another central point of the methodological update concerns company financing. According to Revista Oeste, the financing axis will include real interest in the calculation, adding to the banking spread and country risk, which promises to highlight the weight of the cost of money in the expansion of the productive sector.

What changes for the investor

For those who operate and invest in the markets, the inclusion of variables such as public security and real interest rates in the official measurement offers a more rigorous thermometer on the macroeconomic environment and capital allocation. The new metric details with greater precision the factors that put pressure on corporate profitability, allowing a more sophisticated reading of the systemic and structural risks that impact assets traded on the stock exchange, in the interest market and in the exchange rate.

X-Trader Analysis: what changes for those who trade

Including real interest and crime in the calculation of the Brazil Cost puts into number something that the market already feels in the price: producing in the country is expensive, and part of this cost comes from expensive money and insecurity. With Selic at 13.75%, Brazilian real interest rates are among the highest in the world, which weighs on the profits of listed companies. For those who operate stock markets and future interest rates, the November 18th study is a long-term context, not a short-term trigger.

Automatically translated from Portuguese.