Agribusiness represents 19.6% of the Bahian economy in the 1st quarter of 2023

The Gross Domestic Product (GDP) of agribusiness in Bahia, calculated and released by the Superintendence of Economic and Social Studies of Bahia (SEI), reached a total of R$ 21.4 billion in the first quarter of 2023, which corresponds to 19.6 % of the state’s GDP in that period. This share is lower compared to the same quarter of 2022, when it represented 24.7% of Bahia’s total GDP. The reduction in participation was due to the drop in the prices of agricultural products.

Comparing the current values ​​of the first quarter of 2023 with that of the previous year, there is a decrease of 12.7%, equivalent to R$ 3.1 billion less between the quarters. The sectors that most contributed to this rate were Aggregate IV, with 47.2%, followed by Aggregate II (27.9%), Aggregate III (17.3%) and Aggregate I (7.62%).

In the first half of 2023, compared to 2022, only Aggregate III did not reduce its participation in Bahia’s economy (3.4%). The other sectors had a smaller contribution to the state’s GDP. Aggregate II suffered the biggest drop, due to price reductions, going from 8.14% to 5.41%.

Despite the results, the first quarter is not the most relevant period for agribusiness in Bahia, which is concentrated mainly in the second quarter, when there is greater agricultural production. This positively impacts both the agricultural segment (Aggregate II) and the transport and commercialization sectors (Aggregate IV).

Therefore, a more favorable performance is expected for Bahian agribusiness in the second quarter, with an increase in participation in the state’s total GDP.

According to economist Roberto Dardis, many producers are estimating new growth for this year. “But in everything we have to stay alert. Some countries are already in an economic downturn, but on the other hand, we have China returning to the markets to satisfy its huge population, buying food from everyone.” For the economist, the new harvests will still help the Brazilian economy.

In the west of Bahia, located in the main agricultural production center of the state, are the municipalities that lead the agricultural GDP. São Desidério, Formosa do Rio Preto, Correntina, Barreiras and Luís Eduardo Magalhães stand out in this scenario. The production of soy, corn and cotton remains the main economic activity in these regions.