Publication: Routes to the Northeast: Productivity, Jobs, and Inclusion - The Path to Accelerating National Growth Through Regional Engines
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2025-12-05
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2025-12-15
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The Northeast of Brazil is a potential-rich region, though it still has the lowest income levels and highest poverty rate in the country. The process of economic and social convergence with other Brazilian regions has slowed down in recent years. Recent growth has been driven by agriculture, even in a semi-arid and predominantly urban context, limiting employment opportunities for the largely urban population. Northeastern firms, less productive than the national average, are shrinking despite tax and credit subsidies. Lagging infrastructure also contributes to slow growth. While human capital has made progress, challenges remain in turning these improvements into better jobs and incomes. The report suggests policies to accelerate convergence, such as enhancing the skills and mobility of the workforce, reducing reliance on inefficient subsidies, and encouraging productivity, innovation, and a more enabling business environment. Also, there is a need to rethink financing and management of infrastructure to sustain development. In summary, the Northeast needs to adopt strategies that promote inclusive growth, increase business competitiveness and improve quality of life, taking advantage of its potential to boost national development.
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“World Bank. 2025. Routes to the Northeast: Productivity, Jobs, and Inclusion - The Path to Accelerating National Growth Through Regional Engines. © World Bank. http://hdl.handle.net/10986/44077 License: CC BY-NC 3.0 IGO.”
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