Economy Retraction of mining, in Pará, pulled the North region’s PIB to the ‘bottom’ of the national ranking, says IBGE

S11D processing Plant, in southeastern Pará, which uses dry mining. (Ricardo Teles/ Divulgação)

Marcela Leiros – from Cenarium Magazine

MANAUS – The Gross Domestic Product (PIB) of the North region was the one that grew the least in 2019 due to the retraction of the mining economic activity, in Pará. The region’s growth was 0.5%, placing it at the ‘bottom’ of the national ranking led by the Midwest (2.1%). The data are contained in the Regional Accounts 2019, prepared by the Brazilian Institute of Geography and Statistics (IBGE), in partnership with the State Statistics Bodies, State Government Secretariats and Superintendence of the Manaus Free Trade Zone (Suframa).

Tocantins had the biggest growth (5.2%) in the country, with a high of 278.2% in forest production, fishing and aquaculture, and growth in the commerce and repair of motor vehicles and motorcycles, accumulating R$ 39,355.9 of PIB, while Pará (-2.3%) registered retraction in the economy – with a PIB of R$ 178,377.0 – for the same reason as Espírito Santo (-3.8), which registered a PIB of R$ 137,345.6.

“Espírito Santo and Pará showed a drop, influenced by the retraction of the iron ore extraction activity. The Northern region had the lowest result, with a growth of 0.5 due to the fall, in volume, of Pará, the state in the region with the biggest share in Brazil’s PIB”, explains Alessandra Poça, manager of Regional Accounts.

The little growth in PIB in the North in 2019 stands out from previous years, according to Alessandra. “Between 2018 and 2019, the North region and the South region had gains, while Northeast and Southeast losses, and the Midwest region remained at the same share as in 2018”, she highlights.

(Art: Guilherme Oliveira/Cenarium Magazine)

National level

In 2019, Brazil’s PIB advanced 1.2% and thirteen units of the federation were above the national average: Tocantins (5.2%), Mato Grosso (4.1%), Roraima (3.8%), Santa Catarina (3.8%), Sergipe (3.6%), Amapá (2.3%), Amazonas (2.3%), Goiás (2.2%), Ceará (2.1%), Distrito Federal (2.1%), Alagoas (1.9%), São Paulo (1.7%), and Rio Grande do Norte (1.4%).

The participation of the Southeast, in the national PIB, continues to be the largest, but dropped from 53.1% to 53.0%, influenced by Rio de Janeiro and Espírito Santo. The Rio de Janeiro economy lost participation due to the activities of construction, transformation industries; besides the services of commerce and repair of motor vehicles and motorcycles; and information and communication.

After presenting the largest loss of participation among the federation units, for two consecutive years, São Paulo recorded an increase in participation, leaving 31.6% ,in relation to the total PIB, in 2018, to 31.8%, in 2019. 

The largest increases in gross value added, of the São Paulo economy, were in the group of service activities, among them, financial activities, insurance and related services; trade and repair of motor vehicles and motorcycles; and professional, scientific and technical activities; administrative and complementary services.