Pernambuco Leads Brazil’s Northeast Growth in the First Half of 2026

Pernambuco led Brazil's Northeast in economic growth during the first half of 2026, with a 4.47 percent increase from January to June 2026, according to the Regional Economic Activity Index (IBCRI). No other state in the Northeast matched this pace. The Central Bank's IBCR tracked growth in farming, industry, and services across 17 of Brazil's 27 states.

Only Rio de Janeiro and Mato Grosso do Sul grew faster than Pernambuco, with 5.77 percent and 4.54 percent growth respectively. Brazil's overall growth during the same period was 1.52 percent, while the Northeast region expanded 2.38 percent.

A key driver of Pernambuco's growth was the restarted oil refinery in Suape, which resumed operations after modernization in 2025. The refinery produces diesel, cooking gas, and fuel oil, and is part of the Suape Industrial and Port Complex, a major port-industry hub.

Other growth sectors in Pernambuco included metallurgy, machinery, electrical equipment, chemicals, rubber, plastics, and beverages. Commerce also contributed to the expansion, with supermarkets, home appliance sellers, and computer and office equipment firms leading the way.

The labor market saw 6,162 new formal jobs added in June 2026, and 12,226 new company registrations in the same month, the highest since 2009. The share of companies blacklisted for unpaid debts decreased from 29.36 percent to 27.22 percent over the past year.

Pernambuco's economic growth in 2026 surpassed its performance in 2025, which was 0.8 percent, according to the FGV IBRE research institute. Governor Raquel Lyra's administration has invested heavily in infrastructure since 2023, with state investment exceeding R$5 billion in 2025. Industry's share of the local economy has also been growing, reaching 23 percent of state output in 2023.