Almost 80% of the Brazilian GDP came from only 8 among 27 Federative Units: SP, RJ, MG, RS, PR, BA, SC and FD, but this concentration decreased in 1 percentage points (or R$ 23.7 billion) between 2002 and 2006.  In this period, the North Region increased in 0.4 percentage points its participation in the GDP of the country, while the South decreased in 0.6 pp.  The Federal District continued to record the highest GDP per capita (R$ 37,600), almost three times as much the national average (R$ 12,688) and considerably above the one of SP (R$ 19,548) and RJ (R$ 17,695).  This information can be found in the Regional Accounts 2006, of IBGE.

The publication of the Regional Accounts of 2006 by IBGE, in partnership with the state governments and the SUFRAMA (Superintendence of the Free Trade Zone of Manaus), is part of the project of the regional accounts of Brazil, a series which began in 2002.

North region increased its participation in the Brazilian GDP in all the years of the series

Between 2002 and 2006, the North Region increased its participation in the Brazilian GDP in approximately 0.1 percentage points (pp) per year, increasing by 0.4 pp during the series, while the Northeast and Southeast Regions increased by 0.1 percentage points, both with oscillations year after year. The South and Central West Regions lost 0.6 pp and 0.1 pp of participation in the period, with points of inflection in 2004 and 2005, respectively. 

Eight states concentrated approximately 80% of the economy of the Country

In 2006, the contribution of the eight Federative Units (table below) which led the ranking of participation in the Brazilian economy summed 78.7%, compared to 79.7% in 2002.  This group lost 1 percentage points of participation (approximately R$ 23.7 billion, in 2006) between 2002 and 2006 while the intermediate states such as Espírito Santo, Amazonas, Pará and Mato Grosso increased by 0.8 pp.

Between 2002 and 2006, São Paulo and Rio Grande Sul were the states which most lost participation: from 34.6% in 2002 to 33.9% in 2006 (SP) and from 7.1% in 2002 to 6.6% in 2006 (RS).  São Paulo recovered slightly in 2005, without reaching the level of 2002.  Rio Grande do Sul fell in 2004 and 2005, when a strong drought, together with the loss of prices of grains, reduced its participation.  The same occurred in Paraná, in 2005.

In 2006, the agriculture of SP answered for 2.1% of the income of the state and for 12.8% of this activity in Brazil, below the value of 13.5% recorded in the beginning of the series.  The crops of sugar cane and orange together with cattle breeding accounted for approximately 67% of the state sector in 2006.  The industry, which answered for 30.2% of the economy of the state, had its participation in the national industry decrease by 2.9% during the series, with a result of 34.8% of participation in 2006.

In 2006, Rio Grande do Sul reduced for the third year its participation in the national GDP (7.3% in 2003, 7.1% in 2004 and 6.7% and 6.6% in 2005 and 2006, respectively).  Although agriculture increased by 3% in relation to 2005, returning to the level of the beginning of the series (11% of the national agriculture), industry and services did not return to the level reached in the beginning of the series, 7.5% in 2002 compared to 6.5% in 2006 (industry) and 6.8% compared to 6.3% in 2006 (services).

Rio de Janeiro and Minas Gerais maintained their position in the ranking, but their participation increased by 0.1 percentage points between 2005 and 2006, influenced by their industries, mainly mining and quarrying.  Bahia, the 6th major GDP in all the period, saw its participation return to the beginning of the series (4.1%), with decrease of 0.1% between 2005 and 2006. 

Santa Catarina and Federal District were the only ones to switch position, among the eight first states.  Since 2003, Santa Catarina changed to the 7th position and the FD, to the 8th, with a loss of participation of 0.1% of the services of the Federal District in the total result of Brazil between 2002 and 2003.

Despite continuing in the 9th and 10th position, Goiás and Pernambuco lost 0.1 percentage points of participation.  The agriculture of Goiás, continuing with a strong participation (10.3%) in the economy of the state, faced bad climatic conditions in 2004 and 2005, and lost 2.7 percentage points of participation in the Brazilian agriculture in the series (4.6% in 2006). 

Since 2004, Espírito Santo recorded the 11th major GDP of the country and, after Minas Gerais, was the state that recorded the highest increase.  This can be seen by industry, which recorded 34% of its economy in 2006, compared to 31.8% in the beginning of the series. The activities of iron ore pelletizing from Minas Gerais and the extraction of petroleum and natural gas in the last year of the series influenced the result.

Even loosing position to Espírito Santo and Mato Grosso in 2004, in the following year, Ceará increased from the 11th to the 12th position, where it remained in 2006.  In this year, its participation returned to the level of 2002 (2% of the national GDP). 

The increase of participation of Pará and Amazonas in the GDP of Brazil was approximately, 0.1 and 0.2 pp, respectively.  In the North, Pará and Amazonas were the states in which the public administration had the lowest importance in the  value added. In 2006, the industry of Amazonas answered for 45.7% of the local economy, from which 36.8% came from the manufacturing industry.  In Pará, the industry represented 33.4%, distributed among mining and quarrying (7.5%), manufacturing industry (13.8%), production and distribution of electricity and gas, water, sewage system and urban sanitation (5,4%) and construction (6.6%).

Mato Grosso recorded the 12th major GDP in 2004, but fell to the 15th position in 2006, the same of the beginning of the series.  The loss of participation since 2005 was a consequence of the bad performance of agriculture which, in 2002, participated with 29.7% of the economy of the state, falling to 25.3% in 2006. 

Soybeans were damaged by the Asian soybean rust requiring more pesticides and causing the “sanitary empty space” in 2006, which consisted in maintaining by ninety days the total absence of living plants of soybeans, during the off season.  The devaluation of the dollar in relation to the real also contributed negatively. Besides this, beans and rice were influenced by heavy rainfall and this last crop had its classification lowered from “fine long” to “long”. 

In 2003, Maranhão switched position with Mato Grosso do Sul and remained in the 16th position in the other years of the series.  The economy of Maranhão is based on services, where the public sector represents approximately 20%.  Its industry is gaining participation: approximately 16.7% of the economy of the state in 2002, increased to 19.6% in 2006, with the production of cast iron, calcined alumina, unconnected aluminum and aluminum band. In Mato Groso do Sul, the participation of agriculture in its economy decreased approximately 8% in the series, with significant decreases in the grain harvests, due to droughts and difficulties of the commercialization, since 2004, of products of animal origin due to foot-and-mouth disease.

The participation of Rio Grande do Norte in the GDP (0.9%) increased approximately 0.1 percentage points in 2006, passing Paraíba (0.8%) since 2004.  These two economies are very similar, except for the production of petroleum, which makes RN the second major producer of Brazil, only behind Rio de Janeiro.  In the manufacturing industry of RN, the sectors of food products, beverages, textiles and apparel accounted for approximately 68%, while in the manufacturing industry of Paraíba predominated the sectors textiles, apparel and leather (38%) and food products and beverages (13%).

Alagoas, Sergipe, Rondônia, Piauí and Tocantins maintained their positions in the period.  Only Rondônia increased its participation in the Brazilian GDP in 0.1 percentage points.  Alagoas had an agriculture structure similar to the one of Rio G. do Norte and Paraíba.  In 2006, the sector of food products and beverages increased and accounted for 70% of industry, due to the low performance of the chemical industry.  In Sergipe, the industrial activity represented 31.4% of the economy: 7.4% in the extraction of petroleum, 9.7% in the manufacturing industry, 8.2% in the generation and distribution of electricity (the hydroelectric of Xingó belongs to the state) and 6.0% in construction.

Rondônia which in the last years stood out regarding livestock and in the production of grains (mainly soybeans), had its economy based on the agriculture production (19.4%) and services (66.3%), from which 31.1% corresponded to the public administration.  Piauí, with participation of 0.5% in the Brazilian GDP, was in the 23rd position, and its economy was distributed as follows: 9.5% in agriculture (beans, corn and soybeans, which is gaining importance), 17% in industry (food products and beverages in industry) and 73.5% in services. Tocantins was in the 24th position, with 0.4% of the national GDP in all the years of the series.  Its agriculture represented 18.5% (rice, corn, soybeans and cattle), industry, 24.1% (from which 14.3% belonged to construction) and services, 54.7%, where public administration accounted for 24.6%.  The participation of construction in the economy of Tocantins, a state which was created recently, was the highest among the 27 Federative Units.

Acre (25th) and Amapá (26th), very close, switched position during the series, and depended considerably on the public sector. Amapá and Roraima had approximately 50% of the economy related to the public sector.  The growing rates of their population were the highest ones among the states, generating great demand for public services and infra-structure. Roraima continued to have the lowest GDP among the 27 Federative Units.

Federal District continued with the highest GDP per capita of the Country

The highest GDP per capita continued to be recorded by the Federal District (R$ 37,600), approximately three times the national GDP per capita (R$ 12,688).  In the period, the three highest GDP’s per capita continued in the same order:  Federal District, São Paulo and Rio de Janeiro.  The same occurred with the two lowest ones, Maranhão and Piauí.

Among the states with GDP per capita lower than the average of the country in the first year of the series, Mato Grosso was the only one to record a result higher than the national average in the years that followed: in 2002, the GDP per capita of the state equaled to 90% of the total Brazilian GDP per capita, in 2003, it was 10% higher than this average, in 2004, 30% higher than it, and in 2005, also 10% higher than it. In 2006, it was almost equal to the Brazilian average.  The other states with GDP per capita above the Brazilian average were: Federal District, São Paulo, Rio de Janeiro, Santa Catarina, Espírito Santo, Rio G. de Sul, and Paraná.

Ceará led in volume (8.0%) while Mato Grosso (-4.6%) recorded the only decrease

In 2006, 18 among 27 Federative Units had growth equal or above the Brazilian average (4.0%).  They represented 70.7% of the GDP of the country.  Only Mato Grosso recorded a decrease in volume (-4.6%).  Bahia increased by 2.7% and was the only state of the Northeast with a result below the Brazilian average.

Three among seven states of the North Region– Rondônia (3.6%), Tocantins (3.1%) and Amazonas (2.6%) – brought results below the national average. Pará obtained the third best result in the year (7.1%) as a consequence of the sector of mining and quarrying, with hike of 8.7% in 2006, due to the increase of the production of iron ore (14.8%).  The manufacturing industry increased by 11.7%, as a consequence, mainly, of the sectors of basic metallurgy (22.9%) and food products and beverages (18.0%). Amazonas, second major state of the North Region, increased below the average due to the low performance of the manufacturing industry (0.2%) which accounted for 36.8% of the value added of the state.  The result was influenced by the high base of comparison, due to the performance of the previous years and to the sector of electronic material and communication (-12.8%) which reduced the production of mobile telephones and radio. Rondônia and Tocantins were influenced by the low performance of the agriculture sector, considerably important for their economies, due to climatic factors. Amapá, Roraima and Acre brought good performances as a consequence of the excellent year of the commercial activity in all Brazil, especially in the North and Northeast Regions.

Eight among nine states of the Northeast increased above the national average, standing out the commercial activity (8.1%).  Ceará, in 2006, recorded the best performance among the 27 Federative Units, increasing by 8%, with a good performance of all the economic sectors: agriculture (35.3%), industry (5.3%) and services (6.5%).  The increase of agriculture in the state occurred due to incentive programs, such as the governmental ones, which guaranteed a minimum income for the small farmers, besides technique and genetic improvement.  The other states of the region, except Bahia, also recorded good results.  Stood out Paraíba (6.7%) and Piauí (6.1%) fourth and sixth major increases, respectively.  In Paraíba the performance of agriculture was excellent (19.9%) and this sector accounted for 7.2% of the economy in 2006, influenced, mainly by the increase in the production of beans (90%) and pineapple (5%).  Sugarcane increased by 24%. Piauí recorded the most equilibrated growth, and all the sectors recorded results above the average.  Agriculture (4%) answered for 9.5% of its economy in 2006.  The good performance of beans (41%) and cassava (33%) besides cashew nuts (71%) compensated the decrease in the other crops, mainly soybeans, (-34%).  Livestock recorded a result which showed stability.

Pernambuco had the best year of the series, increasing by 5.1%.  Agriculture increased by 9.3% in its value added, in 2006, and agriculture (7.7%) was influenced by the physical growth of its main crops: sugarcane (2.8%), grapes (3.3%), mango (11.6%) and banana (8.2%).  In the manufacturing industry,  growth occurred in food products and beverages (8.6%), due to the increase in the production of crystallized sugar and soft drinks, and in basic metallurgy (9.2%), with the major manufacturing of steel concrete reinforcing bars and aluminum plates and bands.  In 2006, important constructions favored the sector of construction, such as the duplication of the highway BR 101 and the continuity of duplication of the highway BR 232.

In Bahia, there was a low performance of soybeans, cereals and silviculture.  The industry of Bahia (30.7% of the state economy in 2006) increased by 2.2%, almost similar to the national average (2.3%).  The highlights of the manufacturing industry were paper and cellulose (18.6%), petroleum refining and alcohol production (4.6%), basic metallurgy (9.7%), food products and beverages (-1.2%) and automotive vehicles (-6.3%).  The industry of mining and quarrying (approximately 2% of the economy of Bahia) fell (–7.7%) with the diminishment of the extraction of petroleum and natural gas, and the decrease in the extraction of ores such as copper (-5.3%), chrome (-10.6%) and magnesite (-2.9%).  In Services, which accounted for 61.5% of the value added of the state in 2006, Bahia increased by 3.5%, and the main highlights were: trade (5.3%), financial mediation (7.1%) and public administration (3.3%) which together sum 32.4% of the state’s economy.

Rio Grande do Norte (4.7%), Alagoas (4.4%) and Sergipe (4.1%) increased above the average.  In RN, there was growth of 20.7% in agriculture, representing an increase of 0.8% of the activity in the value added of the state.  In 2006 stood out the irrigated fruit culture, where melon, the main product, had growth of 53% in its production.  Regarding Alagoas, the good performance was a consequence of the manufacturing industry, in the segment of food products and beverages, with growth of 4.2%, and also services with growth of 4.5%.  In Sergipe the overall result of the agriculture segment was positive and was influenced by the growth of 14.6% of livestock, since there was a decrease in agriculture of 7.3%. The result was a consequence of cattle breeding with hike of 18%, with the increase in the production of milk (26.8%) due to investments in the sector and increase in the productivity. Fishing also had a significant increase (18%).

In the Southeast, Minas Gerais (3.9%) recorded a result below the Brazilian average and Espírito Santo recorded the second major growth (7.7%), while Rio de Janeiro and São Paulo remained in the average (4.0%).  Espírito Santo recorded the good performance of industry and services, which increased by 7.4% and 7.5% respectively, with the performance of mining and quarrying and manufacturing in the industrial sector.  Regarding services, almost all the activities recorded a good performance, especially trade (8.7%). Rio de Janeiro was favored by the expansion of the extraction of petroleum (4.6%) and with the increase of the international price of petroleum.  In São Paulo, the highlight was the sector of services (4.5% in 2006), standing out services rendered to companies (4.3%, representing 47.5% of the sector of the country) and maintenance and repair services and trade (5.6%).  The industry of São Paulo increased by 2.0%.  Stood out the performance of the manufacturing industry (1.4%).  Agriculture (–0.2%) with sugar cane and orange (1.5% and 0.8% respectively, in 2006) compensated the decreases in volume of other products of the temporary harvest (-22.3%) such as potatoes (-12.6%) and herbaceous cotton (-37.6%).

In the South, in 2006, only Rio Grande do Sul increased above the average (4.7%), Santa Catarina (2.6%) and Paraná (2.0%) recorded lower results.  In Rio Grande do Sul, in 2006 agriculture increased by 50.1%, compensating the decrease (-17.4%) of the previous year.  As a consequence, the participation of this sector in the economy changed from 7.1% in 2005 to 9.3% in 2006.  The segment of crops determined the growth, due to favorable climatic conditions, a situation different than in the two preceding years, when a severe drought occurred.  The result could be better, was it not for the low performance of the industrial sector (-1.9%), caused by the decrease in the manufacturing industry (–2.4%) closely related to the national agriculture sector.

Paraná and Santa Catarina, which also suffered the drought in the two previous years, had recovery in the agriculture sector: 5.7% and 3.2%, respectively, in 2006.  In Paraná, the highlight was sugarcane (21.2%), a crop which expanded in 69 municipalities, with the diminishment of the area planted of other crops. There were also hikes in the production of beans (47%) and coffee (61%).  In Santa Catarina, the agriculture sector has been recovering from climatic problems which caused losses in the harvest of soybeans, with real growth of approximately 32% in 2006.  Pig breeding had a real growth of 24.5%, as a consequence of a partnership between the big freezers and the small rural properties, mainly in the west region of SC, where the major freezers of the country are located.

In the Central West, Goiás (3.1%) and Mato Grosso (-4.6%) recorded results below the national average while Mato Grosso do Sul (5.2%) and the Federal District (5.4%) recorded results above it.  In Mato Grosso, the agriculture sector (31.2% of the value added of the state in 2005) recorded decrease in volume (-17.9%) in 2006, and its participation, in 2006, fell to 25.3%.  In 2006, the heavy rainfall caused the Asian rust, damaging the production of soybeans.  Besides climatic problems, Mato Grosso with approximately 60% of its production directed to the export crops (soybeans, cotton and corn) had to face the devaluation of the dollar in 2006 which intensified the loss of the value added of these crops.

In Goiás, the production of soybeans, which represented 40% of the exports of the state, had a decrease in relation to 2005 (-13.8%).  With the losses of the last harvests, the producers did not apply the adequate use of inputs and this caused reduction in the average yield.  The manufacturing industry increased only 0.9%, since it was strongly related to the agriculture sector.

In Mato Grosso do Sul, the year of 2006 was marked by the beginning of the overcoming of difficulties faced in 2004 and 2005, when the agriculture sector had significant losses in the harvest of grains, due to droughts.  In livestock occurred difficulties in the commercialization of animal-origin products due to the foot-and-mouth disease, in 2005.  The Federal District was influenced by the results of the sector of services (5.0% and with participation of 93.4% in the economy of the state in 2006). The highlights were: administration, public health and education (3.8%), financial mediation (12.0%), trade and maintenance and repair services (10.3%), which together answered for 71.4% of the economy of the Federal District.