September 9, 2021
22:09
Bruno Pacheco – from Cenarium
MANAUS – The industrial production of the Amazon suffered the largest drop in the country in the passage from June to July this year, with a retraction of 14.4%. According to data from the Monthly Industrial Research (PIM Regional), released on Thursday, 9, by the Brazilian Institute of Geography and Statistics (IBGE), the low was caused by the contraction in production of various activities of the Manaus Industrial Pole (PIM), as in printing and reproduction of recordings (-65.3%) and the manufacture of beverages (-18.6).
The drop occurred after a high of 6.7% in the previous month. Compared to July 2020, when there were more impacts of the pandemic influencing production and consumption, there was also a retraction of 8.1%, according to the institute. The survey also shows that the retraction in São Paulo (-2.9%) was the second largest, but the first in influence on the result, because of the weight of the São Paulo industry in national production. Nationwide, production fell 1.3%, as reported by the IBGE last week.
According to the supervisor of Information Dissemination, Adjalma Nogueira, the fall in industrial production in July broke a series of four consecutive months of high indicator for Amazonas. This occurrence affected other states, but Amazonas was the one that fell the most, notes Nogueira.
“Even in the comparison with July last year, there was a significant drop, which in a way surprises us, to the extent that in that year the occurrences of the pandemic directly affected the local industrial production. The fall in production affected six of the ten local industry activities. Beverages, syrups, printing, engraving were the most affected. Fortunately, rubber and plastics manufacturing, machinery and equipment saved the month of July”, highlighted the supervisor.
The research analyst Bernardo Almeida says that the month of July shows the portrait of the regional industry that was already seen before the pandemic. “With the advance of vaccination and a greater movement of people, the industry begins to show its pre-pandemic reality, but with conditions that have been accentuated, such as unemployment and inflation”, Bernardo tells IBGE.
Segments
According to the IBGE survey, seven industrial activities in the Amazon pushed the drop in production. Besides the sectors of Printing and reproduction of recordings and Manufacture of beverages, the retraction was registered in the spheres of: manufacture of coke, petroleum products and biofuels (-11.4%), manufacturing industry (-8.5%), manufacture of machinery and equipment and electrical materials (-1.4%) and other transport equipment (-0.3%) (motorcycles and parts).
Industrial Production in Amazonas – Sections and Industrial Activities – Variation
Printing and reproduction of recordings -65.3%
Beverage manufacturing -18.6%
Manufacturing of computer and electronic equipment -12.1%
Manufacture of coke, petroleum products, and biofuels -11.4% Transformation industry -8.5%
Manufacture of machinery, equipment, and electrical materials -1.4%
Other transport equipment (motorcycles and their parts) -0.3%4
Source: Brazilian Institute of Geography and Statistics (IBGE)
Also according to the study, some industrial activities in the state showed an increase in production, which was not enough for the negative result when calculating the average of the survey. Among those that had retraction are the Manufacture of rubber products (67.1%), the Manufacture of machinery and equipment (57.7%), the Manufacture of metal products (2.2%) and the Extractive Industry (0.7%).
In the year’s accumulated, in the period from January to July 2021, the Amazonas industry registered an increase of 20.8% in production, compared to the same month of the previous year. According to IBGE, in the same time frame, the high in the industry performance was 11.0% nationally and the performance of the last 12 months, in the State, recorded a high of 14.9%, against 7.0% high in the national performance.
“Year-to-date, there is still a good 21%, but we still have five months until the end of the year. The moving average was quite affected with the strong drop in interest, so the trend for the next month is a weak performance or even a fall”, said the Supervisor of Dissemination of Information of IBGE in Amazonas, Adjalma Nogueira.
Federations
The drop affected seven of the 15 locations analyzed by the survey. Besides Amazonas and São Paulo, the worst performance in industrial production was registered in Minas Gerais, with a drop of -2.6%. The states of Bahia (6.7%), Espírito Santo (3.7%), and Paraná (3.3%) showed the highest increases for the month of July.
The production drop in the Amazon industry (-14.4%), in July, compared to June, was the largest among the federation units, in the period. The worst performances were in Amazonas (-14.4%), São Paulo (-2.9%), and Minas Gerais (-2.6%); and the best were in Santa Catarina (23.1%), Ceará (20.9%), and Amazonas (20.8%).
Concentrated Economy
For economist Wallace Meirelles, with the Amazon having an economy concentrated and dependent on the Manaus Industrial Pole (PIM), it is clear that if the demand of national industry presents a drop, also drop in production and increase in unemployment. According to him, 80% of the Gross Domestic Product (GDP) of the state is Manaus.
“It is a huge percentage of dependence on the Industrial Pole and knowing that, also, this relation of the industrial sector of Amazonas represents 8% of the Brazilian industrial GDP and it is reasonable for an economy like ours. It is evident that if the national demand falls, and we are very attached to the internal market, the economy will show this with the fall in production and the increase in unemployment”, he pointed out.
Meirelles calls attention to the lack of public policies and the logistical problems in the interior of Amazonas, which are a hindrance to the State’s economic development. “We need planning to reestablish the job market, reduce the economy’s idle capacity, the country’s great aggregate demand that has been decelerating, which directly impacts the industries, especially ours”, he concluded.