Recent figures for industrial activity, foreign direct investment and IPOs show that the economy in Ceará is leading the region. Ceará is home to over half the companies in Northeast Brazil on the stock exchange and foreign investment has more than doubled in a decade. In addition, activity in industry in September saw the second highest growth in Brazil.
FDI soars in Ceará
According to a recent survey, Ceará Global 2020, foreign direct investment in Ceará (FDI) has more than doubled since 2010. The number of international investors in the state has grown from 4,104 in 2010 to 8,531 this year.
Between them, the companies have invested over US$4 billion in the economy in Ceará. And despite travel restrictions imposed by the pandemic, 184 new investors arrived in the state in the first half of this year. They have invested over US$4 million.
Italians account for the largest single group of investors with a total of 2,020 active in Ceará. Portuguese investors are the second biggest with 1,854 investors.
8 Ceará companies on the Brazilian stock exchange
The BOVESPA indicates another measure of the success of the Ceará economy. After the latest IPO in mid-November, the Brazilian stock exchange is now home to 8 companies from Ceará. Although the BOVESPA operates with over 400 companies in Brazil, just 17 come from Northeast Brazil. Ceará accounts for more than half of them.
The latest IPO from a Ceará company is Aeris Energy who launched on the stock exchange earlier this month. The company manufactures wind turbines from its base at Pecem Port, a major centre for the economy in Ceará. According to sources quoted in Diario do Nordeste, two more companies in Ceará are set for IPOs this year.
Industrial activity second highest in Brazil
Latest figures from the Brazilian Statistical Agency (IBGE) show that industrial activity in Ceará is back on track. The sector registered its fifth consecutive month of growth in September when it went up by 1.3% on August.
Year-on-year figures were even higher and Ceará saw an annual increase of 8.5% in industry. This was the second highest in Brazil after Amazonas with a 14.2% increase.
Other sectors in the Ceará economy are also showing signs of recovery after lockdown. For example, tourism activity in August registered the highest increase in Brazil.
Keys to success in the economy in Ceará
Analysts attribute the state’s strategic position as a main factor in the success of the economy. Pecem Port, home to several large manufacturing companies and a Free Trade Zone, has boosted the economy considerably over the last decade.
Fortaleza Airport with its range of international flights is another reason behind the surge in FDI in the state. The rise in tourism has been particularly significant in the increase in smaller investors. According to the Brazilian Portuguese Chamber of Commerce in Ceará (CBPCE), they are drawn to several sectors including real estate in Ceará, hotels and restaurants.
(Source: Diario do Nordeste, CBPCE)