The Socioeconomic Dynamics of Pernambuco: A Study of the Recife Metropolitan Region and the Interior of the State from 2012 to 2023
Economic dynamics; Labor market; Pernambuco; Metropolitan Region of Recife; Inequality.
The state of Pernambuco is experiencing a reversal of the economic trajectory observed in the early 2000s, especially since 2007. Since 2014, fluctuations in the Brazilian economy have negatively impacted the recent improvements seen in the state's socioeconomic indicators, with repercussions across its various regions. In this context, this study aims to discuss the socioeconomic dynamics of Pernambuco, differentiating between the Recife Metropolitan Region (RMR) and the Non-Metropolitan Region of Recife (RNMR), over the period from 2012 to 2023. To achieve the research objectives, a qualitative and quantitative analysis was conducted on the subject, presenting statistical data from the IBGE and developing the Multidimensional Socioeconomic Insufficiency Index (IISM) as a means to analyze inequality from a multidimensional perspective. The study reveals that: i. the interior of Pernambuco showed higher average annual economic growth rates than the RMR, increasing its share of the state GDP; ii. the Gross Value Added (GVA) of the RMR’s industrial sector has decreased its share in the region's total GVA and in the state’s industrial GVA; iii. there has been an increase in unemployment and informality rates in the state's labor market, with the highest rates occurring in the RMR; iv. average work income has increased in the RNMR, although it remains low relative to the state average; and v. social inequalities within the state and between metropolitan and non-metropolitan regions have decreased, as measured by the IISM. Therefore, it is noted that Pernambuco has seen declines in its economic indicators in light of recent crises, with the RMR more notably affected by these impacts among its regions.