Economy_of_the_state_of_São_Paulo
The economy of the state of São Paulo is developed and holds the highest GDP among Brazilian states, producing, in 2020, around 2.326 trillion Reais (31.6% of GDP),[1] and the second largest GDP per capita (BRL 48,542.24 in 2018).[2] Being the richest state and population of Brazil, is its main financial center and one of the main centers in the world. The third largest economy and the third largest consumer market in Latin America, occupies the 21st position in the ranking of the largest economies on the planet, ahead of countries such as Argentina, Belgium, Chile and Singapore. Thanks to its enormous economic strength, São Paulo is known as "the locomotive of Brazil".[3]
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The São Paulo economy, developed and heterogeneous, is fueled by abundant natural resources, a well-developed infrastructure, high productivity and a highly qualified workforce, with 70% of the qualified workforce in the country.[4] São Paulo is currently a leader in several sectors of the Brazilian economy, notably in the financial sector, concentrated in the city of São Paulo, which contains more than 30.5% of bank branches and 30% of credit operations in Brazil, in addition to BM&FBovespa, one of the five largest stock exchanges in the world. In agriculture, it stands out as one of the largest producers in the country, being the world's largest producer of orange juice, sugar and ethanol, and also ranks among the main industrial food producers in the world, holding about 35.5% of the national industrial food production. In industry, it stands out as the most modern and varied in Latin America, which has a strong technological base, having the largest industrial park and concentrating 36% of Brazilian production; the automobile industry stands out, being the birthplace of the automobile industry in Brazil, the 15th largest vehicle producer in the world, centralizing more than 41% of the factories of the national automotive complex; the aerospace industry and defense, which is the largest aerospace hub in Latin America. Other important sectors that are also in a leadership position in the country are research and development, health and life sciences, real estate market, energy , information and communication technology (ICT), oil and natural gas, green economy, among others.[5][6]
Located in the Southeast Region, the second smallest in the country in territorial extension, the State of São Paulo borders two of the three states of the Region, Minas Gerais and Rio de Janeiro, and with Paraná to the south and Mato Grosso do Sul to the west, in addition to the Atlantic Ocean to the southeast. The federative unit offers an excellent infrastructure logistics for investments, due to the good conditions and extension of its road network, as well as its infrastructure waterway, port and airport. The interconnection of these networks allows an efficient multimodal transport system. According to a survey carried out by the National Transport Confederation (CNT), 19 of the 20 best highways in Brazil are located in the state, thus being the best road network in the country, with 81.6% of its extension classified as excellent or good.[7] In addition, it has the largest and main port in Brazil – one of the main ones in the world – and the largest port complex in Latin America: the Porto de Santos; and the largest and second busiest airport in Latin America, the São Paulo-Guarulhos Airport. In 2018, the state exported around 52.3 billion dollars, which represented 21.8% of Brazilian exports. Among its largest consumer markets are Associação Latino-Americana de Integração (Aladi), to which it exported 30.23%; the North American Free Trade Agreement (NAFTA), 22.47%; Mercosur, 15.96%. With regard to countries, the United States stands out with 17.36% of exported products, followed by China, with 12.46%. With regard to imports, the two countries remain the main partners, but with the reverse order: the latter accounts for 18.72% of the value of imports from São Paulo, while the United States, 17.43%; Alemanha represents 9.41%.[8]
ICMS collection in São Paulo is the highest in the country. In 2012, it was R$ 109,103,539 thousand or 33.4% of the entire collection of Brazilian states. The state's gross revenue generated something like $550 billion at purchasing power parity.
Despite continuing to grow economically, the state of São Paulo has been losing part of its share in the national GDP, evidently due to the development of other states. In 1990 the state accounted for 37.3% of Brazil's gross domestic product. In 2008, participation in the total production of goods and services in the country was 33.1%.[9] In 2009, the share was 33.5%, falling again to 33.1% in 2010 and 32.1% in 2013 and rising to 32.2% in 2014.[10]
São Paulo is responsible for 28.6% of the Industrialized products manufactured in Brazil. The participation in the national industrial GDP has reduced since 2010, when it was responsible for 32.1% of the total. In relation to the state's GDP, industry accounts for 22.9%.[11] In 2016, it was the state with more billionaires, 71 of the 165 in Brazil.[12]
With COVID-19, the country's economy slowed down, while the state showed an increase above the national average, which fell 4.1%,[13]