Brazilian foundation: Venezuela's business climate deteriorates

The so-called Economic Climate Index (ECI) in Latin America rose in April to 5.2, its best level since the 5.8 points reported in July 2011, according to a study released on Wednesday by the Getulio Vargas Foundation (FGV), a Brazilian center for economic studies.

The Economic Climate Index has improved since October 2011 when it recorded its lowest level in two years (4.4 points), as a result of the international economic crisis, according to a quarterly assessment conducted by the FGV and the Institute for Economic Studies (IFO) of the University of Munich (Germany).

Only three out of the 11 countries examined reported a decline in their business climate between January and April: The ECI declined from 4.7 to 3.4 in Argentina; from 4.2 to 3.0 in Paraguay and from 4.5 to 3.4 in Venezuela.

Venezuela has been hit by inflation, lack of confidence in public policies, lack of competitiveness, shortage of skilled labor, barriers to exports and public deficit.