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Pernambuco, estado (state) of northeastern Brazil, situated near the eastern tip of the South American coastline’s bulge into the Atlantic Ocean. It is bounded on the east by the Atlantic, on the south by the states of Alagoas and Bahia, on the west by Piauí, and on the north by Ceará and Paraíba. The state capital is Recife. The first permanent European settlement of Pernambuco was at Olinda in 1535 by Duarte Coelho Pereira, who...