Manaus (AM) — The January edition of the Amazonas Economic Panel (PEA), a survey carried out by the Center for Industries of the State of Amazonas (CIEAM), shows that the main highlight of recent months continues to be the growth in employment levels, which reached a volume of 500,000 jobs filled by December, representing a record for the region. The analysis of the Amazon economy for the months of November and December was released on January 31st.
The IBCR-AM index showed a 1.94% drop in the Amazon economy between November 2022 and October 2023. The research carried out by IBGE covered the Industry, Commerce, Services and Agriculture sectors.
“The lowest performance in November came from industry, which suffered from the impact of the lack of stock and the drop in port movement due to the drought. However, it is worth highlighting that commerce continued to benefit from the drop in inflation and lower interest rates. Even with this scenario, in 2023, we will reach records for formal jobs in Amazonas”,
explains Luiz Augusto Rocha, president of Cieam.
In the month of November, the performance of the General Industry of Amazonas showed a drop of 11.59% compared to the month of October and 10.29% in the year 2023.
“This monthly and annual drop is the result of the impacts of the Great Drought on industrial production. It is important to remember that, in the month of October, the factories had a good level of accumulated stock, however, they did not expect that the drought would be so severe as to interrupt large shipping for two months. Therefore, in November, some factories were forced to consume a large part of their input stock and ended up reducing their production”, says Luiz.
Performance of industries in Amazonas
Economic activity in Amazonas in November showed a strong negative performance due to the greater impacts of the drought. Local companies, especially in the Manaus Industrial Complex (Pim), continue to experience losses due to the restrictions. The performance of industrial subsectors in Amazonas also had a major impact due to the drought. However, in November the beverage sector recorded an increase of approximately 17%.
The production of inputs derived from oil grew 2% in the period. The sectors that suffered the most from the impacts of the drought were computer equipment and machinery and equipment, with a drop of 30%, while electrical appliances and materials reduced their production by 24%.
“In December, imports from Manaus did not recover enough to guarantee the normalization of the flow and full resolution of the cargo held in the ports”, highlights the president of Cieam.
According to data from Suframa, the month of October featured three main sectors: two-wheelers, electronics and IT goods. A good surprise was the increase in IT revenue, which grew 13% in October. The scenario in the two-wheel sector was the opposite, even with a small increase in production there was a significant drop of 8% in revenue.
“Even with this drop, in December the production of motorcycles at the Manaus Industrial Complex increased by 38%. Between the months of December and February, motorcycle production usually decreases, however, in December 2023 the reduction was not as strong as in 2022. The evolution of motorcycle production in Manaus was more driven by the market than by drought restrictions. Even with the drought, the two-wheel sector experienced one of its best years in 2023, with 3.8 million motorcycles produced”,
Formal jobs continue to rise
Figures released by the Ministry of Labor indicate that the drop in production did not affect total employment in Industry. The level of formal employment in Amazonas in the month of November reached a historic record with 499 thousand vacancies occupied, an increase of 1,969 thousand in relation to the month of October. “In the manufacturing industry, 386 vacancies were created. The growth in jobs is mainly due to the areas of commerce and services”, he adds.
End of the drought
Pim companies suffered a loss of approximately R$1.4 billion as a result of extraordinary logistical expenses (transshipment, accommodation and freight) due to the redirection of inputs due to the interruption of large-scale navigation to Manaus.
Based on the volume traditionally forecast for the months of October and November, it is estimated that companies stopped importing the equivalent of US$ 1 billion in goods, held in local ports and awaiting the resumption of full navigability.
About the PEA
The Amazonas Economic Panel is an analysis of the economic situation in Amazonas prepared monthly by CIEAM based on public information from institutions such as IBGE, Suframa, ComexStat and Abraciclo, in addition to using official data from the Ministry of Labor and Employment. The main data available for analysis is the IBCR-AM, an index number published monthly by the Central Bank as a regionalized version of the IBC-Br, the monthly estimate of Brazilian GDP. The Central Bank makes up the IBCR-AM based on the results of monthly surveys carried out by IBGE, including the main sectors of the economy: Industry, Commerce, Services and Agriculture.
*With information from consultancy
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