The economy of the state of Rio de Janeiro fell by 9,9%, the worst result in 17 years.

The disruption of service provision, the paralysis of industrial activities, worker layoffs, and the loss of purchasing power among the population due to the pandemic resulted in a 9,9% drop in the Gross Domestic Product (GDP) of the state of Rio de Janeiro in the second quarter compared to the same period of the previous year.

This is the worst performance of the indicator in 17 years, according to a study by Firjan, released this Tuesday. The manufacturing industry was the segment with the worst result, registering a drop of 18,9%, due to the reduction in vehicle production. The activity was already facing difficulties due to the Argentine economic crisis, one of the main markets for the Brazilian automotive sector.


The construction sector also contracted by double digits (-12%). As a result, the industry registered a negative result of 2%. Compared to the first quarter, the contraction is 8,4%, marking two consecutive semesters of decline in the state's economy. The drop, however, is less severe than the national result (-11,4%). The estimate is that Rio de Janeiro's GDP will close the year 2020 with a decrease of 4,6%.

According to the survey, the outlook is for a slow recovery next year, registering 3,3%.


Jonathas Goulart, manager of Economic Studies at Firjan, explains that the performance is related to the impact of the pandemic on economic activity, which was most pronounced in April.

"Considering the data released by IBGE up to 2017 and our studies from recent years, we've seen that this is the most intense contraction," explains Goulart.

The expert also points out that in the months of May and June, industry and commerce already showed more positive dynamics. With the increase in oil exports, offsetting the reduction in domestic fuel exports, the oil and gas sector registered growth of 14,5% in the second quarter, being the only subgroup with a positive result.


The service sector, which represents 70% of Rio de Janeiro's GDP, suffered a blow of 11,5%, and agriculture declined by 1,5%.

The study highlights that the state's fiscal situation, the fight against the COVID-19 pandemic, and trade policies are areas that, if addressed, could point to a more positive economic scenario.

The document further emphasizes that "without the implementation of these measures, there will be social chaos, with the paralysis of essential services for the population of Rio de Janeiro and negative impacts on investor and consumer confidence."