Ceará economy to accelerate growth in 2022

Ceará economy to accelerate growth in 2022

The Ceará economy is set to enter 2022 on a new track of higher growth and greater inclusivity. The state aims to increase its share of the Brazilian GDP to 2.5% over the next three years. In 2020, Ceará reached its highest share since records began in 1939. 

Higher share of Brazilian GDP 

A recent meeting of the Ceará government laid down the economic path for the state over the next three years. The overall objective is the increase of Ceará’s share of Brazilian GDP, currently at 2.27%, to 2.5%. 

The state accounts for 4.5% of the country’s population but its wealth creation currently falls short of the same figure. However, the increase in GDP would appear to be achievable, particularly since the Ceará economy reached its highest share ever in 2020

New inclusive development programme

To reach the goal of 2.5%, Ceará will shift its focus away from the sole aim of economic growth to a more social objective. 

“We are going to centre our efforts on inclusive growth so that as the economy expands, we reduce poverty and inequality, said Mauro Benevides, State Secretary for Planning and Management. He believes that this focus will allow Ceará to take centre stage at national level. 

Strong growth over last decade

The Ceará economy has been one of the best performing in the country since 2010. According to figures from the state Institute for Economic Research and Strategy (IPECE), GDP in Ceará grew by 16.5% between 2010 and 2020. In contrast, the Brazilian went up by 10.2%. 

The wealth creation in Ceará has permitted the state government to make significant investment in infrastructure. In 2020, it invested R$2.48 billion, a figure that should exceed R$3 billion this year. 

Increase in average income 

Hand-in-hand with the rise in state wealth goes an increase in locals’ average income. Over the last few years, Ceará has seen an exponential rise, but the state authorities intend to take average income closer to the Brazilian median. 

One of the ways of doing this is through digital connectivity. Over the next three years, the Ceará government plans to install fibre optic internet connections in all 184 municipalities in the state. 

Ceará economy already on track 

The state government’s objective of GDP growth would appear to be more than feasible in the next three years. Ceará registered 2.57% GDP in Q2 this year, almost 1.5% higher than the average for Northeast Brazil (1.09%). 

In August, state GDP went up by 0.74% compared to July. In contrast, GDP in Northeast Brazil fell marginally by 0.04%. In addition, both the quarterly and monthly figures were higher than those for Brazil as a whole

(Source: IPECE and Ceará State Government)