Ceará economy set for 5.8% increase this year

Ceará economy set for 5.8% increase this year

Good progress in the vaccination programme and a balanced fiscal account lead experts to predict 5.8% growth for the Ceará economy this year. The latest figures from Fortaleza University paint a very favourable picture for the state for the rest of 2020. In addition, Ceará registered one of the highest figures in the country for job creation in June and the first half of the year. 

Strong GDP growth in 2021 and 2022

The latest report published by the Economic Research Department at Fortaleza University show that the Ceará economy is well on track to recovery after 2020. The Department predicts 5.8% growth for this year with 3.1% forecast for 2022

The report also examines the most optimistic scenario. In this case, Ceará would experience 7.3% GDP growth in its economy this year, followed by 4.2% in 2022. Figures for the worst case scenario are 4.2% and 1.8% respectively. 

Solid fiscal accounts

Two reasons lie behind the dynamic predictions. Firstly is the progress in the vaccination programme in Ceará and secondly, solid balance books. 

The Ceará administration has the reputation in Brazil for fiscal prudence in its accounts allowing it to balance public debt and investment.

The report highlights “the high level of public investment in Ceará that favours the production chain in civil construction and contributes to the increase in salaries and income from taxes”. 

Ceará economy job creation 

One of the biggest signs of the strength of the Ceará economy this year comes in the figures for employment creation. The state ranks among the best in Brazil for both year-on-year and half-year data

In June, Ceará created a net 4,820 jobs compared to May. In annual terms, net employment rose by 40,352 between July 2020 and June 2021. Both figures are the sixth highest in Brazil. So far this year, Ceará has created 33,256 jobs, the eighth highest figures in Brazil. 

The services and retail sectors account for the highest numbers of new jobs. Civil construction, with residential building at the head, is also one of the drivers behind employment in the state. 

(Source: Ceará government, Fortaleza University)