GDP of São Paulo had record growth of 7.4% in 2007
Folha de S. Paulo
Driven by industry and the financial sector, the GDP of São Paulo grew 7.4% in 2007, above the average of the country, which was 6.1%. The result is the highest one in the historical series of the IBGE, which started in 1995, and consolidates the trend for the interruption of the loss of participation of the State in the economy of the country. In 2006, the GDP of the State grew 4%. From 2005 to 2007, the weight of São Paulo in the GDP remained stable at 33.9%, after a continuous falling trajectory started in 1995.
The information is from the 2007 Regional Accounts. They were disclosed only now because it was necessary to first have the final data of the GDP of the country, which was released early this month. For the IBGE (Brazilian Institute of Geography and Statistics), the profile of the economic growth in recent years has benefited São Paulo, particularly in 2007, when the financial sector and the industry had good performance.
Both the activities are concentrated in the State with a general weight of 44% and 51%, respectively.
According to Frederico Cunha, Manager of Regional Accounts of the IBGE, São Paulo has the most diversified economy of the country, which tends to grow more during periods of strong economic expansion, such as 2007 - when the GDP of the country increased 6.1%, the best result since 1986. The same setting as 2007 can be extended for 2008: industry and financial industry had good results and they will possibly leverage the GDP of São Paulo.
In view of that, it is possible that São Paulo kept its weight in the GDP, said Cunha. "With the growth profile it had until 2007 and that was kept in 2008, the process of regional deconcentration of the economy has probably stabilized". Another factor that should contribute for a better distribution of the GDP this year is the biggest weight of the Government in the economy, with the increase of the public expenditure as a means to make up for the effects of the crisis.