Economy of Rio de Janeiro
The Economy of the Rio de Janeiro City is the 2nd largest regional economy[1] and financial center in Brazil, both one of the largest in Latin America and one of the fastest growing in the world.
In 2008, the city's GDP was estimated at US$ 201 billion (approximately R$321 billion), or 7% of the country's purchasing power parity (and the 75% of State of Rio de Janeiro's economy), making the Rio de Janeiro's fourth richest city in Latin America, behind only Mexico City, Sao Paulo and Buenos Aires, as well as the 30th largest metropolitan area GDP in the world - ahead of cities such as Rome, Barcelona and Beijing.
The city possesses a robust and highly diversified economy, providing large-scale employment in heavy and light industry, manufacturing, commerce, finance, trade, and other service sectors.
Manufacturing
| Economic distribution[2] | |
|---|---|
| Industry | 11.60% |
| Tax | 23.38% |
| Services | 65.52% |
Greater Rio de Janeiro is Brazil's second most important industrial area, trailing only Sao Paulo Metropolitan Area. A newer electronics and computer sector has been added to the older industries of metallurgy, engineering, and printing and publishing. Other manufacturing sectors focus on the production of shipyard-related materials, apparel and footwear, textiles, nonmetallic mineral products, food and beverages, chemicals, and pharmaceuticals. Construction, also an important activity, provides a significant source of employment for large numbers of unskilled workers and is buoyed by the number of seasonal residents who build second homes in the Greater Rio area.
To attract industry, the state government has designated certain areas on the outskirts of the city as industrial districts where infrastructure is provided and land sales are made under special conditions. Oil and natural gas from fields off the northern coast of Rio de Janeiro state are a major asset used for developing manufacturing activities in Rio's metropolitan area, enabling it to compete with other major cities for new investment in industry.
Finance and other services
Having been the capital for more than 300 years, the city of Rio de Janeiro as the site for the headquarters of many private, national, multinational, and state corporations, even when their factories were located in other cities or states. Despite the transfer of the capital to Brasília, many of these headquarters remained within the Rio metropolitan area, including those of Petrobrás, the state oil company, and the National Economic and Social Development Bank, a federal investment bank. As with manufacturing, Rio is an important financial centre, second only to São Paulo in volume of business in financial markets and in banking. Its securities market, although declining in significance relative to São Paulo, is still of major importance. Owing to the proximity of Rio's port facilities, many of Brazil's export-import companies are headquartered in the city.
In Greater Rio, which has one of the highest per capita incomes in Brazil, retail trade is substantial. Many of the most important retail stores are located in the Centre, but others are scattered throughout the commercial areas of the other districts, where shopping centres, supermarkets, and other retail businesses handle a large volume of consumer trade. Rio is one of the premier tourist destinations in the world. The city's vibrant culture and many museums, historical sites, and physical features, especially the beaches of Copacabana and Ipanema, attract large crowds of visitors, as do events and festivals such as the annual Carnival and New Year's Eve celebrations.