Brazil’s Northeast has the potential to become a major engine of national growth, job creation, and sustainable development, according to a new World Bank report, “Routes to the Northeast: Productivity, Jobs, and Inclusion.” Home to 54 million people—80 percent of whom are of working age—the region offers one of the country’s largest and most dynamic labor pools, alongside a rapidly growing clean energy sector.
Currently, the Northeast produces 91 percent of Brazil’s wind energy and 42 percent of its solar power, positioning it as a key player in the country’s energy transition and offering new opportunities in emerging industries like green hydrogen. The report highlights strategies to leverage these strengths, boost productivity in urban sectors such as manufacturing and services, and reduce long-standing gaps with Brazil’s wealthier regions.
“By helping businesses improve, investing in people, and upgrading infrastructure, we can raise productivity and create more and better jobs,” said Cécile Fruman, World Bank Country Director for Brazil. “This will diversify the economy and expand opportunities for upward mobility.”
The report outlines three key fronts to unlock the region’s potential. First, job creation is essential to reducing poverty, but unemployment and informality rates in the Northeast between 2012 and 2022 stood at 12 percent and 52 percent, respectively—higher than in other regions. Expanding skills training, improving job-matching systems, and promoting growth in manufacturing and services can provide higher-quality employment. Targeted measures to support women and marginalized groups are also critical, as female labor force participation in the Northeast is only 41 percent, compared to 52 percent nationwide.
Second, strengthening the business environment is vital. Streamlining administrative procedures, fostering competition, expanding access to finance, and reducing reliance on productivity-limiting tax subsidies can encourage entrepreneurship and investment, helping local firms thrive and innovate.
Third, enabling infrastructure is key to connecting communities and boosting productivity. Investments in roads, railways, and digital networks, along with improved water and sanitation, will generate jobs and link people to services. The report also emphasizes well-planned public-private partnerships to finance and deliver impactful projects efficiently.
With strategic investments and reforms, Brazil’s Northeast can transform into a hub of sustainable growth, creating inclusive jobs while leading the nation’s transition to a greener, more diversified economy.
