Regional economic trends show growth in Pernambuco and Santa Catarina

Economic projections for the Brazilian states of Pernambuco and Santa Catarina indicate varied growth trajectories for the coming years. In Pernambuco, a study by Santander’s Economic Department forecasts GDP growth of 1.6% in 2026 and 0.8% in 2027. The services sector, which accounts for 60.7% of the local economy, is expected to grow by 1.5% and 0.5% in those respective years. While these figures are lower than national averages, the industrial sector is projected to show resilience with growth of 1.9% in 2026 and 1.5% in 2027.

In Santa Catarina, IBGE data shows strong performance in the commerce and services sectors. The state's commerce sector has grown by 4.9% over the last 12 months, significantly outpacing the national growth rate of 1.6%. The services sector in Santa Catarina has expanded by 2.0% over the same period. Despite high interest rates and a difficult macroeconomic environment, the state's retail sector remains among the top six performers in Brazil, having grown by 4.5% in the first half of the year.