The association of machine builders for the Brazilian leather sector, Abrameq, interprets the rapid implementation of 5G, which could add 81.3 billion reals (BRL) to GDP in 2030, as an opportunity for productivity growth in the leather sector: "... the new technology will make it possible to expand the activities subject to automation and digitalization...». [Implementação rápida do 5G pode acrescentar R$ 81,3 bi no PIB – Abrameq]
The impact of Brazil's 5G adoption on economic growth will depend on the speed of implementation of the new technology. The difference between an accelerated and a slow spread will be 0.20 percentage points in potential GDP per capita in 2030, equivalent to a BRL 81.3 billion increase in GDP this year. The data come from the study 5G Technology – Economic impacts and barriers to diffusion in Brazil, prepared by CNI.
In the most optimistic scenario expected, by 2030, the penetration of 5G in the country will be 81%. In the most pessimistic scenario, the indicator drops to 40.5%. The calculations take into account the GDP projection (in BRL) for 2021 and the population growth estimates made by the IBGE and were made before the auction held in December.
Potential GDP growth is the result of working-age population growth (PIA) and labour productivity. The latter indicator will be affected by the adoption of 5G. Thanks to the low response time (latency) and the high data transmission speed, the new technology will allow to expand the activities subject to automation and digitization, as part of the consolidation of Industry 4.0.
