Brazil's regional disparity continues to increase

Rio city housing, Brazil
Rio city housing, Brazil
December 12th, 2016 - Georgi Ninov, CEIC Research Analyst

Rio city housing, Brazil

Despite a significant reduction in the inequality between Brazil's five geographical regions (North, Northeast, Southeast , South and Central-West) in the period 1980-2010, there are still significant disparities between the wealthier South and Southeast, and the North. The drastic austerity measures that are expected to be implemented by Temer's administration threaten to disrupt government initiatives throughout the country which in turn could lead to a further rift between the economic conditions in these regions.

The North and Northeast regions contributed to roughly 20% of Brazil's GDP in 2014 even though they comprise about 36% of the population and 63% of the territory of the country. The GDP per capita of the Southern regions is more than twice as high. There are also visible discrepancies between the regions with regard of the industrial and agricultural development and foreign trade.

Regional Division: by State North: Acre, Amapá, Amazonas, Pará, Rondônia, Roraima, Tocantins Northeast: Alagoas, Bahia, Ceará, Maranhão, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, Sergipe Central-West: Goiás, Mato Grosso, Mato Grosso do Sul, Distrito Federal (Federal District) Southeast: Espírito Santo, Minas Gerais, Rio de Janeiro, São Paulo South: Paraná, Rio Grande do Sul, Santa Catarina

Trade balance by region

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12th December 2016 Brazil's regional disparity continues to increase

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