Bahia - Economy

Economy

The industrial sector is the largest component of GDP at 48.5%, followed by the service sector at 40.8%. Agriculture represents 10.7% of GDP (2004). Bahia exports: chemicals 22.4%, fuel 17.5%, mineral metallics 13%, paper 9.4%, cacao 5.6%, vehicles 4.8%, soybean 4.5% (2002).

Share of the Brazilian economy: 4.9% (2004).

The state has the biggest GDP of the states of the North/Northeast. Bahia is the main producer and exporter of cacao in Brazil. In addition to important agricultural and industrial sectors, the state also has considerable mineral and petroleum deposits. In recent years, soy cultivation has increased substantially in the state. Bahia is the sixth largest economy in the country. In the mid 1950s, the Bahian economy could be considered a typical example of the primary-exporting model, which followed the subsistence production. For ten years, this dynamic was led by the cocoa crop, that used to be the state's main product and its most important source of income.

With the acceleration of the industrialization process in the 1970s, which started in the 1950s, the productive structure began to change. This process, which was not limited to the regional market, was inserted in the Brazilian industry matrix through the chemical (specially petrochemical) and metallurgical segment. Consequently, for the last twenty years, the dynamism of the Bahian economy has surpassed the national economy, yielding higher growth rates than those achieved by the national economy. The industrial sector is expected to continue to be the main contributor to this growth, particularly from 1999 on, when the investments that are being made now in the chemical, petrochemical and automotive segment, and in agroindustry and food production will be consolidated.

The Bahian economy began 2005 in a very healthy state, with an exceptional trajectory of growth, once again presenting activity indicators superior to those of the Brazilian economy. Those numbers are the result of the endeavours of the Bahian Government, the result of increasing productive investment, and therefore, potential production, something that has been carried out through attractive enterprise policies in all segments of the economy, placing Bahia in a privileged position in the regional and national scenario. Today, the State has a differentiated economic profile. Bahian industry has continued to diversify and widen its productive base, with the implantation of new industrial segments, like the automobile and tyre industries, footwear and textiles, furniture, food and beverages, cosmetics and perfumes, information technology and naval development.

Exceptional results can be seen in agriculture, commerce and tourism, where Bahia appears as one of the principal national destinations. For this to happen, the strategic position model of Bahia in the international tourism route was fundamental, with direct and regular flights to Europe, the United States, and the Southern Cone, due to the complementary governmental and private initiatives, besides the development of new tourist poles integrated to the local culture.