Rio de Janeiro's Economy Outpaces National Growth in 2025 Amid Regional Sectoral Trends
Rio de Janeiro's economy grew 2.6% in 2025, outpacing national GDP, while Santa Catarina shows sectoral agricultural and industrial shifts as detailed in NECAT's latest analyses.
- • Rio de Janeiro's economic activity increased by 2.6% in 2025, surpassing Brazil's 2.3% GDP growth.
- • Osmar Lima highlights the importance of investment projects to enhance residents' economic opportunities in Rio.
- • NECAT's February 2026 newsletter reports on economic shifts in Brazil, including agricultural trends favoring soy and wheat in Santa Catarina.
- • Despite a December slowdown, Santa Catarina's industrial and commerce sectors ended 2025 positively; services remain strong, especially in IT.
- • Santa Catarina's labor market saw year-end job losses, but average hiring salaries exceeded national averages, mostly for jobs paying up to two minimum wages.
Key details
In 2025, Rio de Janeiro's economic activity grew by 2.6%, surpassing Brazil's overall GDP growth of 2.3%, according to a report from the city's Municipal Secretary of Economic Development. This growth reflects sustained economic activity and investment attraction efforts in the city, with Osmar Lima, the municipal secretary, emphasizing the continuation of projects designed to increase opportunities and income for residents. The Indicator of Economic Activity of Rio (IAE-Rio), which compiles tax revenue and data from the Brazilian Institute of Geography and Statistics (IBGE), serves as the basis for this positive assessment.
Meanwhile, the Núcleo de Estudos de Economia Catarinense (Necat) at UFSC provided additional regional economic insights in its February 2026 newsletter. The publication highlighted broad economic shifts across Brazil, including growth in interior cities driven by agribusiness and mining, contrasted with declines in traditional industrial centers. In Santa Catarina, notable agricultural trends show a shift towards soy and wheat cultivation at the expense of staple crops like corn, rice, and beans, raising concerns about family farming's sustainability.
The industrial sector in Santa Catarina saw a downturn in December 2025 but ended the year on a positive trajectory, while commerce experienced a similar December dip yet concluded the year with growth buoyed by technology and household goods. The services sector remained above pre-pandemic levels, particularly in IT and professional services, despite a weaker December performance. Labor market adjustments typical for year-end were observed, with temporary job losses; however, average hiring salaries in Santa Catarina surpassed the national average, though most new jobs paid at or below two minimum wages.
Together, these findings reveal dynamic and varied economic developments across Brazilian states in 2025, with Rio de Janeiro demonstrating robust growth above the national average and Santa Catarina navigating sectoral shifts amid positive labor market indicators. These evolving trends underscore the importance of policy and investment in fostering sustainable regional economic growth.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
