data of Indicator of Economic Activity in Rio (IAE-Rio), calculated by Municipal Secretariat for Economic Development, Innovation and Simplification (SMDEIS), reveal that the carioca economy grew 1.6% in the second quarter of 2022, compared to the immediately previous quarter. In that same period, the Brazil’s GDPaccording to IBGE, increased by 1.2%, and the Rio de Janeiro economy grew by 0.5%, according to data from the Central bank. In other words, the economic activity of Rio grew, in this quarter, 25% more than Brazil and three times more than the Rio de Janeiro state.
This better performance of the Rio de Janeiro economy in relation to the Rio de Janeiro and Brazilian economy is also related to the strengthening of the service sector, such as tourism, accommodation, among others, the segment that most employs the population and that has a greater weight in the economy of Rio. It is worth mentioning that services were the most affected by the pandemic, and the segment that is recovering the most.
Thiago Dias, Secretary of Economic Development, Innovation and Simplification, says that the recovery of Rio’s economy, in addition to strengthening the job market, with the reduction of unemployment and generation of jobs and income for cariocas, shows the fundamental role of the City Hall’s actions at this time. . “The challenges are still great, but Rio is already getting back on track, and the economic data show that.”, concludes Days.
Brazil and RJ
In Brazil, the service sector, including commerce, represents approximately 70% of the total economy. In the state of RJ, the rate is 75%, and 87% in the state capital.
Several projects from City Hall of Rio helped to strengthen the carioca economy, improving the city’s business environment, generating employment and income for cariocas. It is worth noting that Rio’s unemployment rate has dropped to single digits (9.8%), something that hasn’t happened since the end from 2016, with a drop of 5.8 pp in one year, with a recovery even faster than that of Brazil. And Rio has already generated more of 140 thousand new jobs in a year and a half, being the second capital that created the most jobs in the country.
Among the City Hall’s actions that led to this performance of the economy, there is the fiscal rebalancing of the city, putting the public accounts in order again; emergency measures during the pandemic, with aid for companies and citizens; and various structuring projects, such as revive Center, LICIN – Integrated Licensing, Economic Freedom Act, Porto Maravalley, between others.