The new overview of the Regional Accounts System provides an updated picture of economic growth in Brazil and reveals important changes in the regional distribution of national wealth. The research by the Brazilian Institute of Geography and Statistics (IBGE), released this Friday (14), shows that all 27 federation units recorded Gross Domestic Product (GDP) expansion in 2023, reaffirming the resumption of national growth. According to the survey, the Center-West and North were the regions that most expanded their share in the economy between 2002 and 2023.
GDP Growth Reaches All States in the Country
In 2023, Acre (14.7%), Mato Grosso do Sul (13.4%), Mato Grosso (12.9%), Tocantins (7.9%), and Rio de Janeiro (5.7%) led the annual expansion rates. The national GDP grew 3.2% in the period. According to the IBGE, agribusiness played a fundamental role in the performance of Center-West states and part of the North, especially through soybean production.
In Rio de Janeiro, the extractive industry dominated by oil and gas was the main driver of the increase. As highlighted by IBGE Regional Accounts manager Alessandra Poça, “The rise in Rio de Janeiro (5.7%) was driven by growth in extractive industries, especially oil and gas,” she said.
Agribusiness and Services Drive Regional Expansion
The Services sector also contributed significantly to the growth of economies such as Acre, Mato Grosso do Sul, Tocantins, and Rio de Janeiro. Activities like public administration, health, education, and social security boosted results in these federation units, while vehicle and motorcycle trade strengthened performance in Center-West states. In Industry, Mato Grosso do Sul stood out due to hydroelectric generation, while Mato Grosso was propelled by alcohol and food manufacturing.
Among the lowest growth rates in 2023 were Pará (1.4%), São Paulo (1.4%), Rio Grande do Sul (1.3%), and Rondônia (1.3%). In Rondônia’s case, intense drought hampered energy generation. “This reduced electricity generation and the Electricity and gas, water, sewage, waste management and remediation activities,” explained Alessandra Poça.
Center-West and North Gain Share in Brazilian Economy
The research confirms that the Center-West increased its GDP share by 2.0 percentage points between 2002 and 2023, while the North advanced 1.1 percentage points in the same period. The Southeast region, meanwhile, lost 4.4 percentage points, mainly due to declines in São Paulo and Rio de Janeiro.
The highest average growth rates over the period were recorded in the Center-West (3.4% per year) and North (3.2% per year). Mato Grosso (5.2% p.a.) and Tocantins (4.9% p.a.) led long-term state growth.
Per Capita GDP Reinforces Federal District’s Historic Leadership
The Federal District remains at the top of the per capita GDP ranking, reaching R$ 129,790.44 in 2023, a value 2.4 times higher than the national average. The next positions were held by São Paulo and Mato Grosso. The lowest rates remain concentrated in the Northeast, with Maranhão in last place. The survey shows that only nine states exceed the national per capita GDP average, all located in the South, Southeast, and Center-West regions.
Source: brasil247.com