Significant Losses in Municipal GDP

GDP losses These factors are shaping the Brazilian economic landscape, with the municipalities of São Paulo and Rio de Janeiro facing the greatest challenges between 2022 and 2023. This article will explore the causes of these losses and how certain municipalities in Rio de Janeiro state, such as Maricá, Niterói, and Saquarema, were particularly impacted.

Furthermore, we will analyze the decrease in the participation of non-capital municipalities in the national GDP and the growth of capital cities, which, driven by the recovery of the service sector, managed to reverse the negative trends.

Finally, we will address the impact of the fall in commodity prices, especially in sectors dependent on the extractive industry.

Overview of Municipal Participation in the National GDP 2022-2023

The Brazilian economic landscape between 2022 and 2023 reflects significant changes in the distribution of Gross Domestic Product (GDP) between capital cities and non-capital municipalities.

During this period, the share of non-capital municipalities in GDP had a fall of 72,5% to 71,7%.

This reduction is mainly attributed to these municipalities' dependence on the extractive industry, especially the oil and gas sectors.

The fall in commodity prices, specifically a reduction of 22.7%, negatively impacted the economies of cities such as Maricá, Niterói, and Saquarema in the state of Rio de Janeiro, and Ilhabela in São Paulo.

This results in considerable losses in the economic participation of these regions on the national stage.

On the other hand, Brazilian capitals saw significant progress, increasing their share of 27,5% to 28,3%.

This growth is mainly due to the recovery of the service sector.

Cities like São Paulo, which has progressed 0.36 pp

, stood out in this context.

The improved performance of capital cities highlights a distinct economic dynamic, where tertiary sector activities, less impacted by the fall in commodity prices, played a predominant role.

This new configuration strengthens the leading role of capital cities in the national economic context, more robustly balancing the distribution of Brazil's GDP among various municipalities.

For more details, explore the full study by accessing it here. IBGE: See who gained and who lost share of GDP..

Losses in GDP Share in the Municipalities of Rio de Janeiro and São Paulo

The municipalities of Rio de Janeiro and São Paulo faced significant losses in their share of the national GDP, reflecting regional and local economic challenges.

Maricá led the declines with a loss of 0.3 percentage points, followed by Niterói and Saquarema, which registered -0.2 percentage points, and Ilhabela and Campos dos Goytacazes with -0.1 percentage points.

These changes demonstrate a critical dependence on the extractive industry, particularly oil and gas, directly impacting the economy and well-being of local populations.

Graphical Representation of Percentage Drops

The decline in the share of the national GDP of municipalities in Rio de Janeiro and São Paulo between 2022 and 2023 is clearly visible in recent statistics.

Maricá (RJ) suffered the biggest loss, with a decline of 0.3 percentage points.

On the other hand, Niterói (RJ) and Saquarema (RJ) were close, with decreases of 0.2 percentage points each, followed by Ilhabela (SP) and Campos dos Goytacazes (RJ), which decreased by 0.1 percentage point.

The graph above visually illustrates these declines, highlighting the differences in percentage decreases among the selected municipalities.

This visual representation reinforces the significant impact these changes have had on local economies, especially in areas... dependent on the extractive industry.

When we observe these differences, it becomes clear how variations in commodity prices drastically affect these regions.

Impact of the Fall in Commodity Prices on the Municipal Extractive Industry

The fall of 22,7% in commodity prices, especially in the industry of oil and gas, has had a significant impact on Brazilian municipalities that depend on these extractive activities.

This reduction directly affected the Gross Domestic Product (GDP) of cities like Maricá and Saquarema, both in Rio de Janeiro, which saw their shares of the national GDP decrease drastically.

The pressure exerted by this decline is even more evident when we analyze the numbers that demonstrate how much the economic confidence of these locations is tied to the commodities market.

Important to note that, while these cities like municipalities dependent on oil While facing challenges, major cities like São Paulo are seeing a recovery in the service sector, which has contributed significantly to their economic growth.

The shift in the global commodities landscape not only redefines local strategies but also highlights the need for economic diversification in these regions to mitigate future volatility.

Capital Gains and the Recovery of the Services Sector

The recovery of the service sector in Brazilian capitals was one of the main drivers of economic growth between 2022 and 2023. São Paulo stood out significantly, with an advance of 0.36 pp

its share of the national GDP, driven by the robust recovery of sectors such as technology and finance.

This phenomenon was not isolated, as Brasília and Porto Alegre also recorded significant gains, strengthening their local economies.

In Brasília, public administration and the education sector played crucial roles, while in Porto Alegre, commerce and healthcare showed a strong recovery.

The expansion of these services reflects a national trend, where the tertiary sector reaffirms its economic importance.

Some of the activities that contributed most to this growth were:

• Business tourism
• Financial consulting
• IT Services

This positive dynamic highlights how Brazilian capitals are capitalizing on their urban advantages to boost economic growth.

For more details on the changes in the GDP of the capital cities, check out the analysis in [link/reference]. IBGE website.

In short, the GDP losses The figures recorded in 2022 and 2023 reflect the economic vulnerabilities of some municipalities, while others, such as the capital cities, are finding opportunities for growth.