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The city is becoming one of the richest in Brazil! The growth of the industrial hub, combined with tourism, boosts the local economy, but challenges such as slums and urban violence threaten this progress.
With a Gross Domestic Product (GDP) over R$ 103 billion, the city has experienced significant development, combining a diversified economy with an expanding industrial hub.
Known as the “Paris of the Tropics” Due to its beautiful architecture and rich history, Manaus has exceeded expectations by establishing itself among the five richest cities in Brazil.
In the last two decades, Manaus has risen from seventh to fifth position in the ranking of the richest cities in the country, as explained by the YouTube channel Sem Economês.
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The city accounts for more than 70% of Amazonas' GDP and established itself as the main economic hub of the North region.
This accelerated development reflects the combination of strategic sectors, such as the advanced technology industry, over 500 cutting-edge industries, in addition to the ecotourism, which attracts thousands of tourists annually.
The role of the Manaus Free Trade Zone in economic growth
Much of the economic success of Manaus is directly linked to the creation of Manaus Free Trade Zone (ZFM) in 1967.
The ZFM was a federal government strategy to decentralize Brazilian industry, which until then was concentrated in the Southeast, and promote the development of the Amazon.
With tax breaks, such as tax exemption or reduction, the ZFM attracted national and international companies, such as Samsung, Honda and Philips, who established their production bases in the capital of Amazonas.
This economic model made possible the creation of Manaus Industrial Pole (PIM), which currently occupies an area of more than 10 square kilometers and registered, between January and October 2023, exports of $ 2,3 billion and a record turnover of $ 147 billion, according to data collected by the Sem Economês channel.
This industrial hub is responsible for generating more than 112 thousand direct jobs, consolidating Manaus as the economic base of the state of Amazonas and one of the main pillars of Brazilian industry.
Economic diversification and natural resources
In addition to the success of the Free Trade Zone, another factor that drives the economic growth of Manaus is the natural wealth of the region.
The state of Amazonas has vast deposits of minerals, such as cassiterite, bauxite, uranium, niobium, gold and iron, with reserves valued at more than BRL 4,3 trillion.
These natural resources have been essential to sustaining the input industry that supplies the industrial hub of Manaus.
It is estimated that up to 25% of the industrial inputs used in the hub come directly from local and regional mining.
The mining industry, together with the high-tech sector and ecotourism, has diversified Manaus' economy, ensuring that the city is no longer exclusively dependent on a single sector.
Ecotourism, for example, has become one of the most important economic drivers of the capital, attracting tourists from all over the world interested in exploring the Amazon, its biodiversity and lush natural landscapes.
The sector moves around annually R $ million 400 in the local economy, as highlighted by the Sem Economês channel.
Challenges of population growth and infrastructure
Although Manaus' economic development is impressive, it is accompanied by significant challenges.
The population of the capital of Amazonas has grown 14,6% between 2010 and 2022, double the national average, according to the IBGE census.
Manaus is currently the seventh most populous city in Brazil, over 2,2 million population.
This disorderly growth has generated urbanization problems and worsened the housing deficit, which has reached more than 105 thousand homes.
A slumming is also a growing issue.
In 2021, it was estimated that around 47% of the city's territory was made up of slums, a direct consequence of the lack of adequate urban planning to accommodate the rapid population increase.
The lack of basic infrastructure, such as sanitation and paving, in many areas of the city, has created zones of vulnerability, where the population lives in precarious conditions.
The impact of violence and drug trafficking
Another challenge that Manaus faces in its economic and population growth process is the urban violence.
The city has become a strategic point for drug trafficking, due to its proximity to producing countries such as Colombia, Peru and Bolivia.
The rivers that surround the city, such as the Solimões River, are used as routes for the flow of drugs, facilitating transport to the rest of Brazil and abroad.
This reality has fueled the presence of criminal factions in the region, which compete for control of these routes, increasing crime.
According to the channel Sem Economês, Manaus is now the third most violent capital in Brazil, with a rate of 55,7 homicides per 100 inhabitants, behind only Salvador and Macapá.
Furthermore, in 2023, the city led the ranking of cell phone thefts and robberies in Brazil.
Outlook for the future
Despite these challenges, the future of Manaus looks bright. promising.
Economic growth and the development of its industrial infrastructure place the city in a privileged position on the national scene.
The combination of a diversified industry, rich in technology and natural resources, with an expanding service sector, especially the ecotourism, creates an environment conducive to new investments.
If you can face urban challenges, such as slums and violence, and invest in a more inclusive infrastructure, offering quality of life to its inhabitants, Manaus has everything to consolidate itself as the richest city in Brazil in the coming years.
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