Despite improvement, Brazil's absolute distance from the "efficiency frontier" - a baseline level indicating best practices in several categories - remains large. 

An obvious place to start with additional reform is the tax system, whose complexity makes fulfilling even basic obligations a challenge. Here, Brazil ranks 184th out of 190 in the World Bank report. Reducing high barriers to trade with foreign countries would also help increase productivity and growth.

Brazil has taken steps to improve its credit market, but here too there is a chance for more progress. In addition to the newly approved electronic receivables registry, Congressional approval of a "positive credit registry," similar to a consumer credit rating system, would have a positive effect on risk assessment and bank spreads. A new bankruptcy bill is also on the agenda, which would complement the truncated reform that was approved in the first half of the last decade.

Widening the space for greater competition in credit options for consumers, including via fintechs, would also help improve access to finance. Facilitating such access on a sustainable basis and not depending on public sector favors would not only improve the business environment, but also strengthen foundations for higher economic growth.