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How has industry affected sao paulo?

Updated: 8/19/2019
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The state of São Paulo is characterized historically by a large concentration of industrial

Despite the devolution experienced mainly from the 90s, in a process that is still ongoing, the well known ABC in Greater Sao Paulo (in the municipalities of Santo Andre, Sao Bernardo do Campo and Sao Caetano do Sul) is responsible for half of the production national: 45.8% in 2005 (according to Anfavea and Abeiva - Business Association of Importers of Vehicles).

The automobile industry is a major economic sectors in Brazil, confirmed by 11.5% participation in the Gross Domestic Product (GDP) in 2005, reflecting the importance it holds also in the rest of the world. Thus, heating or downturn in the sector focus on related segments, as suppliers of raw materials and its marketing network and associated services. Moreover, its performance influences the recruitment of manpower.

Domestic production, and consequently on the Sao Paulo region, showed a sharp drop at the end of 2008 and early 2009 (14.2% over the same period of 2008) under the influence of the poor performance of exports - on account of reduced demand in key markets worldwide, fell 47.4% - far more intense than in the domestic market, which overcame the crisis and equaled last year's performance (Valor Econômico, 06/04/2009)

Currently, the industry shows recovery, but also can be seen in Figure 16. According to the IBGE, the main impetus for recovery in São Paulo came from the auto industry, which records a good index in the first four months of the year, after a sharp fall in late 2008.

On a smaller scale of analysis and examine the overall performance of the activities and economy of the state of Sao Paulo, one realizes that, as a reflection of strong economic downturn in developed countries, the main importers of Brazilian products manufactured in the same period, Bludger in trade, exports and imports also figured losses and recent trend around the normalização.retratando the fall in consumption globally and nationally, respectively. This is indicated by FIESP state of Sao Paulo to -37.5% in first half of 2009 compared to the same as in 2008, as a contraction of 22.5% of total exports.

The sector that presented greater shrinkage in the state since last year, along with mining at the national level, was the Metallurgy, with the highest drop since 1991. This event can be seen in Figure 18, where, through the Index of Economic Activity [Industrial], calculated by FIESP, shows the strong descent occurred since October 2008, a time when the international crisis has deepened. Importantly, the sector provides a very basic input coupled to the external market, since it is present in much of the products exported by the country.

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