Oil And Gas Industry And Construction Resumption In Rio de Janeiro Boosts State GDP

Driven by the Oil and Gas Market and Construction, Rio Had the Highest GDP Growth in the Country, Compared to Other States.

The construction industry and the mineral extraction sector, which includes the oil and gas sector, were the main contributors to Rio de Janeiro having the highest GDP growth in the country, compared to other states, according to data from Firjan. Petrobras is Selling Three Major Submarine Pipelines Interconnecting the Pre-Salt Fields in the Santos Basin

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Last Thursday, the 5th, the Federation of Industries of the State of Rio de Janeiro (Firjan) released its Technical Note on the Gross Domestic Product (GDP) of the state and reported a 1.5% growth in Rio’s economic activity in 2019.

According to the data, the growth recorded in 2019 exceeded the 1.2% growth that Rio de Janeiro experienced in 2018, and remained above the national GDP, which recorded only 1.1% growth last year.

“This is the 2nd consecutive year of GDP growth in RJ, indicating continuity in the process of economic recovery, but it is still slow and not widely spread across all sectors,” evaluated Firjan’s Economic Studies Manager, Jonathas Goulart.

The economist explained that the GDP increase in 2019 was driven by the extraction industry, which stood out with an 8.8% rise for the year, consolidating the expectation of an intense recovery in the oil and gas market, where the cities in the surrounding region of the Campos Basin, especially Macaé, play a significant role in the fluminense economy.

According to the data released by Firjan, the extraction sector was followed by the public utility industrial services sector (SIUP), and the construction industry, which also recorded growth of 1.9% and 1.0% respectively in 2019.

“The increase compared to 2018 is good news, making us optimistic, especially because we have surpassed the national GDP. Some sectors have stopped their downward trajectory, which is also positive. However, it is still a very localized result concentrated in the oil and gas industry. Our expectation is that this will disseminate to other segments, consolidating a virtuous cycle,” commented the president of Firjan’s Business Council on Economics, Sérgio Duarte.

Projection for 2020

Firjan believes that the estimated GDP growth for the state in 2020 will be 1.9%, and cites the reduction in interest rates as one of the factors that should assist in the economic development of RJ.