By Dean Newman
England’s World Cup campaign kicks off tomorrow with the game against Italy being played in Manaus. High humidity and tropical heat may await the players, but what else do we know about the capital of Amazonas, Brazil’s most northern state?
Founded as a small port village in 1669, Manaus grew rich in the late 19th century when it was ruled by rich colonial rubber barons. When the rubber industry migrated to Southeast Asia, economic prosperity took a knock. However, the establishment of a Free Trade Zone in the 1960s and significant investment over the past decade in airport infrastructure have played an important role in integrating the city with the rest of the country.
Being located in the middle of the world’s largest rainforest, a thousand miles from the sea and with no real road network to speak of, Manaus airport plays a pivotal economic role and is one of the most important airports in the country’s North and Northeast regions.
Last year, Manaus airport handled 25.6% of Brazil’s cargo air transport. Growing volume in airfreight has been supported by the authorities’ success in attracting hi-tech manufacturers to the region, including global players such as Nokia, Samsung and Sony. The state can also boast a thriving industrial sector, particularly manufacturing. Today, Manaus’s factories employ about 100,000 and maybe up to half a million indirectly.
Living standards, as measured by GDP per capita, continue to rise in Amazonas but still lag the gains being made nationally. With less than 2% of the Brazilian population, the state has never been an economic heavyweight, but in similar mode to the English football team, it has underlying strengths, great potential and may surprise a few more people by advancing even further.
Dean Newman is head of emerging markets at Invesco Perpetual
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