A part of the GDP migrates from the capitals to the inside of Brazil

A part of the GDP migrates from the capitals to the inside of Brazil

In 2020, metropolises account for 29.7% of the indicator, the lowest level in the series started in 2002, says IBGE

With the impact of the pandemic on the service sector, capitals once again lost their share of GDP (Gross Domestic Product) in Brazil in 2020, according to a survey released this Friday (16) by the IBGE (Brazilian Institute of Geography and Statistics).

According to the body, these metropolises accounted for 29.7% of GDP in the initial year of the health crisis. It is the smallest participation of the capitals in the economic activity indicator since the beginning of the historical series, in 2002.

The result represents a loss of 1.7 percentage points compared to 2019, when the rate was 31.5%. The participation of the capitals was 36.1% in 2002, at the beginning of the series.

The other municipalities accounted for 70.3% of the national GDP in 2020. The participation was 1.7 percentage points higher than that recorded in 2019 (68.5%). The rate was 63.9% in the initial year of the series.

The data are part of the survey of the municipalities’ GDP. In the view of IBGE analysts, the data reinforce the trend of “deconcentration” of economic activity over the years.

In other words, it is as if a part of the GDP had migrated from the large urban centers to the interior of the country, although the metropolises continue to have a relevant weight in the indicator.

Before the pandemic, the other municipalities were already gaining share due to the advance of activities carried out far from the capitals, including those focused on commodities such as soy and iron ore.

Already in 2020, while segments such as agriculture and livestock remained with heated demand, the service sector was hampered by restrictions on the movement of people.

This, says the institute, contributed to the loss of participation of capitals, since services are more concentrated in large urban centers.

The sector involves various activities, from trade to transport and education and health.

“The capitals felt the weight of the pandemic more”, said Luiz Antônio de Sá, an analyst at the IBGE.

São Paulo accounts for 9.8% of GDP

In 2020, the city of São Paulo concentrated 9.8% of the country’s GDP. The result represents a loss of 0.49 percentage points compared to 2019.

Even so, the capital of São Paulo remains comfortably at the top of the ranking. It is followed by Rio de Janeiro (4.4%), Brasília (3.5%), Belo Horizonte (1.3%), Manaus (1.2%), Curitiba (1.2%), Osasco (1% ) and Porto Alegre (1%).

Of the 25 largest municipal GDPs, 11 are from capitals. These 25 locations account for 34.2% of the national indicator.

From 2019 to 2020, São Paulo (-0.49 percentage points), Rio de Janeiro (-0.45 percentage points), Brasília (-0.21 percentage points), Curitiba (-0.14 percentage points) and Paraná’s São José dos Pinhais (-0.12 percentage points) had the biggest share losses.

São Paulo, Rio and Curitiba were affected by trade. Brasília had a drop associated with financial activities, insurance and related services, says the IBGE.

On the other hand, Parauapebas and Canaã dos Carajás, in Pará, were the municipalities that gained the most share of GDP in 2020, compared to 2019. The advances were 0.19 percentage points and 0.15 percentage points, respectively.

As a result, the two cities now account for 0.50% and 0.30% of GDP. The advance in the extraction of iron ore was pointed out by the IBGE as the main reason for the results of the pair.

Manaus had the third largest share gain among municipalities in 2020. The increase was 0.06 percentage points, to 1.21% of national GDP. The capital of Amazonas, which brings together companies from the Free Zone, had an impact from the transformation industry.

Source: Leaf

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