As we look at Brazil’s industrial sector in May 2024, we see a mixed landscape, as reported by the Brazilian stats agency IBGE.
In seven of the fifteen areas surveyed, industrial production has exceeded pre-pandemic levels. This data highlights a significant recovery in these regions.
Leading the pack, Mato Grosso has seen a robust growth of 23.8%, with Rio de Janeiro and Goiás also showing notable increases of 10.5% and 8.9%, respectively.
Yet, on a national scale, Brazil’s average industrial production still trails 1.4% behind pre-pandemic figures.
This includes regions like Rio Grande do Sul, where production has plummeted by 23.8%.
The industrial parks that surpassed pre-COVID levels were
- Mato Grosso (23.8% above pre-pandemic),
- Rio de Janeiro (10.5% above),
- Goiás (8.9% above),
- Minas Gerais (5.0% above),
- Santa Catarina (4.5% above),
- Amazonas (4.3% above), and
- São Paulo (1.6% above).
Regions with industrial production levels below pre-COVID-19 figures included
- Pernambuco (-0.4%),
- Paraná (-0.8%),
- Ceará (-13.1%),
- Northeast (-15.6%),
- Pará (-15.7%),
- Espírito Santo (-16.5%),
- Bahia (-17.6%), and
- Rio Grande do Sul (-23.8%).
This mixed recovery highlights the varied effects of global disruptions and different regional industry recoveries.
Brazil’s industrial sector shows resilience and persistent challenges, reflecting worldwide post-pandemic recovery trends.
Background
In May, Brazil’s industrial production fell 0.9%, the second consecutive decline after April’s 0.5% drop, reports IBGE.
This reduction erased the 1.1% gain achieved between February and March.
Consequently, the industry now operates below the pre-pandemic level of February 2020 and 17.8% below its peak in May 2011.
Compared to May 2023, industrial production dropped by 1.0%, following an 8.4% rise in April.
The industrial sector has grown by 2.5% in the first five months of 2024. Over the past 12 months, the sector saw a 1.3% growth, although the pace has slowed.
Out of 25 activities surveyed, 16 experienced a decline in May. The most significant downturns were in:
- motor vehicles, trailers, and semi-trailers (-11.7%) and
- food products (-4.0%).
- These sectors were heavily impacted by the floods in Rio Grande do Sul.
Other sectors that declined included:
- chemicals (-2.5%),
- electrical machinery and equipment (-6.3%),
- tobacco products (-28.2%),
- metallurgy (-2.8%),
- machinery and equipment (-3.5%),
- printing and reproduction of recordings (-15.0%), and
- various other products (-8.5%).
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief