Business in Sao Paulo Brazil. Economy Export Business Opportunities

Summary

The State has 40 million of resident inhabitants, almost 22% of the Brazilian population. It is the state with the country's largest population, largest industrial complex, highest economic production, the one that receives the largest number of immigrants and, as expected, the most cosmopolitan state in South America. With the country's best infrastructure and a highly skilled labor force, São Paulo can be called "Brazil's locomotive".

All kinds of products are manufactured in the state, mainly high tech items. Its strong points, however, are not only related to the industry. Paulistas - São Paulo inhabitants - have also transformed agriculture and livestock farming into potency. As regards the Economy, there are more than 258 malls spread nationwide, 155 of which in the Southern region, responsible for more than 300,000 job positions, aside from a comprehensive wholesale and retail chain nationwide.

The State of São Paulo stands out for its significant participation in the national economy, being responsible for 30% of the Brazilian Gross Domestic Product (GDP). The economy of the State of São Paulo is vigorous and diversified, and the State has the largest industrial park of the country and a labor market characterized by the qualification of its labor force.

The São Paulo industry is based on a solid technological foundation, generating products with high added value, with emphasis on the Information Technology (IT), Informatics, Aerospace, and Automotive segments. The agribusiness is significant and shows high productivity rates.

The State of São Paulo exported nearly US$ 46 billion in 2006, being responsible for more than 33% of the Brazilian exportations. Nearly 35% of that amount was generated by 15 products, among which sugars (from sugar-cane, sugar beet, and sucrose), automobiles, airplanes, cellular telephones, boneless beef and orange juice. 92% of the total of exported products is industrialized and destined to the following countries: The United States, including Puerto Rico (19%); ALADI (Latin-American Association of Integration), except Mercosur (17%); European Union (16%); Mercosur (14%) and Asia, excluding the Middle East (8%).

The importance of the manufactured products is also present in the imports: almost 44% of the Brazilian foreign purchases of manufactured products is made by the State of São Paulo. Its participation is equally important in the importation of basic products, reaching almost 31% of the national total.

The United States is the main foreign supplier of the State of São Paulo, responsible for almost 21% of the value of the imports made by the State of São Paulo. Germany comes second, with almost 10% of the foreign purchases.

The State of São Paulo concentrated 43.1% of the cost of the Brazilian manufacturing in 2004, totaling approximately US$ 65.4 billion.

The State of São Paulo is the country’s greatest pole of services: the State contributes with nearly 45% of the Brazilian service sector’s income. The São Paulo Metropolitan Region alone is responsible for over 60% of this participation.

Specifically for investments in infrastructure, the State of São Paulo has a great competitive advantage: it is the pioneer in the establishment of Public-Private Partnerships. Instituted by a state law of 2004, the program of the PPPs defines the mechanisms of collaboration between the State and the private sector, including the creation of the São Paulo Company of Partnerships - CPP, a state company non-dependent of the Treasury whose objective is to give guarantees to the partnerships.

São Paulo's participation in the Brazilian banking system reaches almost 50% in volume terms. Also, Latin America's largest Stock Exchange is located in the state's capital.

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