Revenue at the Amazonas Industrial Complex is expected to grow 8.9% in 2024, study shows

A economy of Amazon started 2024 with a positive performance. All indicators present a favorable scenario to the industries region this year. According to the Amazonas Economic Panel (PEA) study, a survey carried out by the Amazonas State Industry Center (CIEAM), with relevant information on the activity of the Manaus Free Trade Zone (ZFM), the State’s economy is expected to grow by 2. 89% in 2024, with an increase of 8.9% in the production of industries in the region.

“Our expectation is that the revenue of the Manaus Industrial Pole (PIM) will accumulate a value of R$ 188 billion this year, if the problems with the Great Drought of 2023 do not repeat themselves”, predicts Luiz Augusto Rocha, president of CIEAM.

Within the Manufacturing Industry, the biggest increase at the beginning of this year occurred in the Equipment sector, which almost doubled its production, reaching an increase of 85.7%. The IT Goods sector, with an increase of 73.2% in industrial activity, is also highlighted by its performance in production volume and job growth, with expectations that 2024 will be better than 2023 in production, revenue and jobs.

“Among the State’s large productive sectors, IT Goods was the area with the lowest performance in 2023. Fortunately, it started the year with the expectation that it will join the Two-Wheel sector to make 2024 a positive year in all aspects” , explains the president of CIEAM.

Manaus Industrial Hub. Photo: Disclosure/Secom AM

Jobs in the region are also growing. The expected record of 500 thousand formal jobs, surpassed in December 2023, was surpassed again in January this year, reaching the number of 518,157 formal jobs, according to Caged (General Register of Employed and Unemployed), which belongs to the Ministry of Work and Employment.

With 127,227 vacancies, the Manufacturing Industry registered a record for the last nine years. The increase of 1,065 vacancies in the Industry job stock was almost identical to that in Services, with both explaining the increase in Amazonas’ general stock in January 2024 compared to the previous month.

Industry jobs rose particularly in the IT Goods sector, whose net increase of 362 hires reinforces optimism for 2024. In the Food Industry sector, the increase of 225 hires indicates a possible positive surprise for this year.

According to the study prepared by CIEAM, the optimism is due to the good results recorded in January, which registered growth of 4.9% compared to the same month in 2023. In relation to December, it showed an increase of 3.7%. The result reflects the positive variation in the Amazonas Regional Economic Activity Index (IBCR-AM), released monthly by the Central Bank. The PEA brings together information from other strategic sources, such as the Brazilian Institute of Geography and Statistics (IBGE) and the Manaus Free Trade Zone Superintendence (Suframa).

The positive performance is, in part, due to the absorption of inputs retained in ports prior to Manaus (AM), due to the Great Drought faced by the state last year. In the seasonal comparison (Jan.23/Jan.24), the industry increased by 11.7%; trade, 9.1%; and services, 10.7%.

In the case of consumer goods, in addition to the anticipation of purchases of electronics, mainly notebooks, in 2020 and 2021, to meet the needs of home office and distance learning, credit restrictions, family debt and a drop in the average ticket for products reduced sales in 2023.