07/25/2024 – 17:44
The climate tragedy of the floods in Rio Grande do Sul (RS) will cause losses of R$97 billion to the Brazilian economy in 2024, estimates the National Confederation of Commerce of Goods, Services and Tourism (CNC). Of this amount, R$58 billion will be lost by the state of Rio Grande do Sul, and the remaining R$38.9 billion by the other states.
The impact on Brazil’s Gross Domestic Product (GDP) could be as much as -1%. In the labor market, 195,000 jobs will be eliminated in RS and 110,000 jobs in other states, totaling 305,000 jobs.
According to the CNC, the trade, services and tourism sectors require urgent mitigation measures to prevent the situation from worsening. “The reconstruction of Rio Grande do Sul will require continuous efforts and substantial investments,” says CNC chief economist Felipe Tavares.
Estimates by sector
Projected losses in trade could reach R$10 billion, equivalent to 5% of 2023 revenue. The impact is also due to the reduction in the traffic of goods on the roads, with a 28% drop in vehicle flow.
In tourism, the estimated losses are R$49 million per day, with an accumulated loss of R$2 billion until June 2024 alone. In 2023, RS was responsible for 6% of tourism revenue in Brazil, in 2023.
There are also agricultural losses. The sector represented around 6% of Rio Grande do Sul’s GDP in 2023.
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