Cost-Competitiveness Indicators

The publication Cost-Competitiveness Indicators allows one to track the evolution of Brazilian industry’s competitiveness in relation to the country’s main trading partners, based on the unit labor costs (ULC), an indicator of cost-competitiveness. The annual publication presents the relative unit labor costs (Relative ULC), which compare the evolution of ULC between two countries, that is, Brazil and each of its main trading partners. It also presents a more general measure called the effective unit labor costs (Effective ULC), which is the weighted average of the relative ULC between Brazil and its main trading partners, with the weights given by the share of each partner in the country’s trade flows.


Brazil gains competitiveness as industrial costs fall

In 2018, unit labor costs (ULC) in Brazilian industry fell by 9.5% as compared to the average ULC in the country’s main trading partners, according to the indicator of effective unit labor costs (effective ULC), measured in real US dollars. The decline in the indicator in 2018 more than offset the loss of Brazil’s competitiveness in the 2015-2017 period, during which effective ULC recorded growth of 9.0%.


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