States linked to agribusiness are expected to lead GDP growth in 2021

The states whose economies are linked to agribusiness should register a greater growth than the national one in 2021 and lead the recovery of the Brazilian economy until 2022, according to a survey by MB Associados.

The consultancy estimates that 15 states are expected to advance above the national average this year, 8 of them from the midwest and northern regions, in addition to large agricultural producers in the northeast region such as Piauí and Bahia.

The highest growth should be observed in Mato Grosso (4.97%) and the lowest in Rio de Janeiro (2%). For Brazil’s GDP, the forecast is for growth of 3.2%, after falling 4.1% in 2020. ”

The trend that we have seen in recent years and that remains is that states with a strong commodity base tend to have a slightly stronger recovery, especially in the case of the midwest states” says the chief economist at MB Associates, Sérgio Vale.

Among the leaders in the ranking, Amazonas and Rio Grande do Norte are the only states whose growth projection is not directly related to agribusiness, but rather to a weaker basis of comparison, since in 2020 their economies fell further than the GDP of Brazil.

“The Manaus Free Trade Zone experienced difficulties last year. It is a production chain that depends on inputs and there was a lot of paralysis because of that”, he explains.

Source: G1

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https://g1.globo.com/economia/noticia/2021/05/21/estados-atrelados-ao-agronegocio-devem-liderar-alta-do-pib-em-2021-veja-ranking.ghtml

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