Espírito Santo is a small state that represents 0.5% of the Brazilian territorial area and around 1.9% of the population, but it has been standing out on the national scene due to its economic stability and political incentives and benefits, attracting investors from different regions of the country and abroad.
The state's economy is centered on four major sectors:
1. Oil and gas, being the 3rd largest producer in the country;
2. Mining, with the largest iron ore pellet production park in the world;
3. Steel industry, the 3rd largest Brazilian producer, recognized for the competitiveness of its products;
4. Cellulose, ranked 5th in the national scenario.
In the period from 2017 to 2022 we had a sharp drop in oil and gas production, going from 142 million to 47 million barrels, that is, 67% due to the aging of wells without new investments.
At the same time, pellet production fell from 31 million in 2017 to around 15 million tons in 2022, that is, 52% due to the shutdown of several production units at Vale and Samarco, due to a lack of iron ore, caused by accidents in the Brumadinho and Mariana mines, in Minas Gerais.
These events caused a drop in the state's GDP (gross domestic product). Foreseeing this possibility and based on known experiences in other countries, especially the case of the “Dutch disease”, the state sought to diversify its economy, attracting new companies to the production sector, supporting those established here, strengthening the service and trade sectors, highlighting logistics companies, and taking advantage of the state's excellent location. In addition, it created the ES Sovereign Fund – FUNSES to ensure responsible management of revenues from oil and gas exploration.
As a result of this work, 134,000 jobs were created in the state during the same period, representing a 20% increase in new formal jobs. Local companies have modernized and trained, and currently have approximately 58% of their revenue coming from sales to other states and exports.
Expectations for the coming years are good. Vale is in the final stages of assembling two units to produce green briquettes, a new technology for adding value to iron ore. Samarco is expected to resume its pelletizing units. ArcelorMittal Tubarão is expected to install the Cold Rolling Mill (LTF) in Serra, enhancing its product line and making it easier to attract manufacturers of white goods (refrigerators, stoves, etc.) to the state.
Added to this is Petrobras' investment in an FPSO platform (IPB Maria Quitéria) in 2024, which is expected to produce more than 30 million barrels per year. It is also worth noting that new oil and gas operators are entering the state. These are traditional companies that have acquired assets and are expected to make investments to expand production in onshore and offshore fields.
This good result achieved is the result of joint work by the government and private initiative, making the state of Espírito Santo “THE NOTABLE LITTLE THING”, a good place to live, work and do business.
