As Brazil begins to emerge from the worst of the pandemic, employment and industrial activity are on the rise. In Ceará, the latest figures point to a strong uptick in economic activity in Q2 – considerably higher than the average for Brazil and Northeast Brazil – and more employment. Analysts believe that as 2021 draws to an end, there will be more good economic news from Ceará.
Strong economic activity
Figures recently released from the Brazilian Central Bank (BCB) for July this year reveal a significant rise in economic activity in Ceará. Specifically, the rate went up by 0.36% compared to June and by 3.01% in year-on-year terms.
The rise is even higher when the figure looks at the accumulated economic activity in the last 12 months. For this period, Ceará registered a total increase of 4.53%. The uptick is considerably higher than the average for Northeast Brazil (3.95%) and the country as a whole (3.26%).
Preview of GDP growth
The BCB economic activity data gives a general idea of the direction of GDP growth. And many analysts regard it as a prelude to GDP figures. In this case, Ceará is clearly outperforming both the region and the nation when it comes to economic growth.
The state economic board, IPECE, predict a 5.8% GDP growth for Ceará this year with a slightly lower figure of 3.1% for 2022. The forecast for Brazil currently stands at an increase of 5.1% for this year.
Rising employment
Employment goes in tandem with the good economic news from Ceará. IPECE statistics for Q2 show that the job rate is rising and unemployment falling.
The latest figure for unemployment stands at 15%, down in the quarter and just slightly above the national average. 128,000 new jobs were created in Ceará in the year to the end of June. Analysts believe that the data shows a clear improvement as the state economy recovers from the effects of the pandemic.
Effects of the green hydrogen hub
Current figures have yet to reflect the imminent boost to the Ceará economy from the creation of a green hydrogen hub in the state. With major investment from four international companies, the hub is expected to create at least 5,000 new direct jobs in its initial stages.
Two of the four companies have yet to confirm their estimates of employment. As a result, the actual figures for new jobs will be significantly higher than 5,000. The number of indirect jobs is also not yet part of the calculations.
Analysts believe that the hub will take the state’s economy to new heights, particularly in terms of jobs and GDP growth.
(Source: Brazilian Central Bank, IPECE)
