São Paulo’s GDP grows 1.5% in the first four months – 06/29/2023 – Panel SA

São Paulo’s GDP grew 1.5% in the first four months of this year compared to the same period in 2022. According to the Seade Foundation, the São Paulo government’s data analysis body, the increase was driven by the services sector (3 %) and agriculture (0.9%).

Industry in the state, on the other hand, recorded a drop of 2.1%.

“This growth demonstrates that we are on the right track, focused on attracting investment, regional development and reindustrialization, in addition to improving competitiveness”, says the Secretary for Economic Development, Jorge Lima.

In the accumulated of the last 12 months compared to the same previous period, São Paulo registered a positive GDP of 2.9%.

Agro down

Discounting the seasonal period, in March and April the GDP of São Paulo fell by 0.6%. In the two months, the industry sector grew by 1.8%, while the service sector shrank by 0.7% and agriculture dropped by 6.3%.

The scenario of agro in São Paulo is the opposite of that registered nationally, which in the 1st quarter rose 21.6% and was the main component of the result above expectations for the national GDP.

According to the government of São Paulo, it is still not possible to determine what caused the oscillation in March and April, but the devaluation of the dollar had an important influence on the result.

The Tarcísio de Freitas management is confident that the numbers will improve in the coming months. The agro business community is a strong ally of former President Jair Bolsonaro, from whom Tarcísio surfs the popularity of the years he served as Minister of Infrastructure.

“Innovations and qualified training in the field are important differentials in favor of agribusiness in the state of São Paulo. The commercial result of agro in São Paulo in the accumulated result for the year is positive, despite the oscillation in April, and shows that we are on the right path”, says Antonio Junqueira, Secretary of Agriculture and Supply of the state.

Despite the slide in GDP, the agribusiness trade balance recorded a surplus of almost US$ 8 billion in the four months, a figure that is 7.3% higher than the same period in 2022. The result was driven by the 7% increase in exports. According to the Institute of Agricultural Economics (IEA), São Paulo is responsible for 15% of the country’s exports.

With Diego Felix

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