Brazil was the fastest growing countryin the world between 1930 and 1995, with an average annualgrowth rate of 6.1 percent. By 2000, Brazil'sper-capita income stood at R$6,500. While RN's percapita income is slightly above half the national average,it increased from 43 percent of the national average in 1947to 47 percent in 1998, implying that RN's economy grewfaster than that of Brazil for over half a century. This hasalso been true in recent years. Between 1990-1998, RN'sincome per capita showed a respectable trend growth rate of3.0 percent. The close relationship between Brazil'seconomic growth and RN's economic progress in the lastfive decades reflects a response to common macroeconomicforces and external environment as well as the enormousinfluence of national policies and programs on RN'seconomy. However, the state can also implement policies andprograms to stimulate growth and employment. For thispurpose, an understanding of trends in state GDP andemployment and of the sources of growth is important.RN's economy has undergone a rapid and welcometransformation from one dependent on salt, cotton, sugar,and cattle to one dominated by services. The service sectorhas increased its share of GDP from 40 percent in 1985 to 59percent in 1998. Over this period, the share of industrydeclined from 50 to 34 percent and the share of agriculturefell from 9 to 7 percent, though its share of totalemployment remains relatively high at 18 percent, reflectinglower productivity of agricultural workers. The shares ofservices and industry in total employment are 53 and 29percent, respectively.
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