Paraíba accelerates GDP growth in the second half of the year and will reach the 3rd highest rate in the country in 2025, reveals Banco do Brasil

Driven by new projections for the industrial and services sectors, Paraíba accelerated its growth in the second half of this year and achieved the 3rd highest growth rate in the country in 2025, in addition to leading the Northeast region. This is revealed by the latest Gross Domestic Product (GDP) projection from the Regional Economic Advisory Review study by Banco do Brasil, published this December.

According to the Banco do Brasil study, Paraíba’s GDP is expected to expand by 5.5% this year, behind only Mato Grosso (7.1%) and Mato Grosso do Sul (5.9%). However, it leads among the states of the Northeast and will grow well above the national average (2.2%) and even further above the Northeast average (1.8%) in 2025 (see the chart with all growth rates).

According to the Banco do Brasil study, in the Northeast region the main positive revision for 2025 occurred in Paraíba, driven by new projections for industry and services. The Monthly Services Survey for September indicated growth of 4.7% compared to the previous month, and the state has already accumulated a 5.5% increase in 2025—the same rate recorded by the Monthly Trade Survey.

INDUSTRIAL GDP STANDS OUT NATIONALLY – By sector, Paraíba’s economic performance in 2025 is driven by the strength of industrial GDP, which is expected to expand by 7%, representing the 2nd highest growth rate in the country, well above the averages projected for Brazil (1.6%) and for the Northeast (0.2%).

SERVICES SECTOR GDP IS THE 2ND HIGHEST IN THE COUNTRY – The GDP of Paraíba’s services sector, which accounts for nearly 70% of the state’s economy and includes segments such as trade, public administration, transportation, storage and postal services, real estate activities, accommodation and food services away from home, private education and health, and services in general, is expected to post the 2nd highest growth rate in the country (5.5%). This increase will be more than double the rate projected for Brazil in 2025 (2.2%) and for the Northeast region (2.2%).

AGRICULTURAL SECTOR GROWS ABOVE THE NORTHEAST AVERAGE – Even with a significant portion of the state located in the semi-arid region and with a smaller weight in economic activity, Paraíba’s agricultural GDP is expected to grow by 6.5% this year, exceeding the Northeast average (5.3%).

The State Secretary of Finance (SEFAZ-PB), Marialvo Laureano, highlighted Paraíba’s positive performance nationwide and its leadership in the Northeast region in the industrial and services sectors, even in the face of a challenging national economic environment marked by high interest rates.

“There was an expectation that we would lead the Northeast in GDP growth, but we did not expect such a high percentage (5.5%), which is double Brazil’s rate and more than three times the Northeast average. We attribute this expansion to our policy of investing with our own resources. In Paraíba, we have invested both in structural areas and in social areas. In addition to paving all cities and their ring roads, our government has invested year after year in water security and sanitation. Another structural area that has received investments with our own resources is regional aerodromes in Paraíba, as well as the Port of Cabedelo, even though it is a federal facility.”

STRUCTURAL PROJECTS – Marialvo also mentioned the metropolitan ring roads of João Pessoa (currently nearing completion) and Campina Grande (already completed), as well as the Ponte do Futuro (Future Bridge), a major highway complex under construction in Paraíba that will connect the cities of Cabedelo, Santa Rita, and Lucena in the Greater João Pessoa area. The project aims to improve mobility, reduce travel time, boost the economy and tourism, and integrate the northern coast of the metropolitan region with access to highways BR-230 and BR-101, as well as a bicycle lane that is already well advanced. “Altogether, there are more than 600 projects underway or nearing completion across the state, with investments aimed at improving the quality of life of Paraíba’s population and attracting new private investments,” he emphasized.

FISCAL MANAGEMENT ENSURES INVESTMENT – The State Secretary of Finance stated that “this is how the João Azevêdo administration has been working. We are achieving excellent results across various indicators and accumulating positive indexes with national prominence in sectors such as industry, retail, and services, reducing unemployment to the lowest level in history and improving the quality of life of Paraíba’s population year after year. In addition, we have kept the state’s public accounts balanced for seven years, which ensures the continuity and expansion of public policies in education, health, and public security, as well as investments in infrastructure projects throughout all regions of the state.”