Brazil’s Northeast region could play a significant role in the country’s economic development, according to a new World Bank report titled “Routes to the Northeast: Productivity, Jobs, and Inclusion.” The report highlights that the region, which is home to 54 million people—80 percent of whom are of working age—has one of Brazil’s largest labor pools.
The Northeast is central to Brazil’s clean energy efforts, generating 91 percent of the nation’s wind power and 42 percent of its solar energy. These resources position the area for sustainable industrial growth and potential expansion into sectors like green hydrogen.
The World Bank study outlines strategies aimed at accelerating growth in the Northeast and reducing disparities with wealthier regions. It suggests moving away from dependence on agriculture toward increasing productivity in urban sectors such as manufacturing and services.
“By helping businesses improve, investing in people, and upgrading infrastructure, we can raise productivity and create more and better jobs. This will diversify the economy and expand opportunities for upward mobility,” said Cécile Fruman, World Bank Country Director for Brazil.
The report identifies three main areas for action:
Job creation: Unemployment in the Northeast averaged 12 percent between 2012 and 2022, while informality reached 52 percent—both higher than national averages. The report recommends expanding training programs so workers can gain skills for better jobs. Improving job-matching systems is also advised to connect workers with available positions. Special attention should be given to women and marginalized groups; currently, female labor force participation stands at just 41 percent in the Northeast compared to 52 percent elsewhere in Brazil.
Business environment: Policymakers are encouraged to simplify procedures for starting businesses and administration to encourage entrepreneurship and attract investment. The report also calls for fostering competition, expanding access to affordable finance for local firms, and reducing reliance on tax subsidies that may hinder productivity.
Infrastructure: Upgrading roads, railways, digital networks, water supply, and sanitation are seen as essential steps. These improvements would help create jobs and link communities with vital services. Attracting private-sector involvement through partnerships is recommended as a way to finance major projects efficiently.
Further information about the World Bank's work in Brazil can be found on their official website (https://www.worldbank.org/en/country/brazil) or via their LinkedIn page (https://www.linkedin.com/company/bancomundialbrasil/).