This is the third post from the series ” The Brazilian Estates”. In case you don’t know, Brazil has 26 estates, plus a Federal District that is located within the estate of Goiás. This means that for the next 23 weeks you will still be seeing this series of posts. 😀
Why I present Brazil as I’m presenting…
I have realized that a lot of people do not have any idea of what there is in Brazil. Frankly, this is totally expected from you as a foreigner. However, I feel compeled and oblidged to show you what each Brazilian estate has to offer, what are the opportunties and challenges in each estate, and hopefully give you more material to your decision making. After all, in order to decide, you need solid information, and this is what Denmark Brazil is all about..Information that will create awareness and will enable you to have a better understanding about Brazil, the opportunities and challenges existent in each estate and hopefully, this knowledge will contribute to your decision making on whether to invest in Brazil or not…Ahh, I just forgot to mention. It is FREE of CHARGE. So I hope you enjoy it, and make good use if all the info hereby posted.
Enough bla bla…Let’s get started!
Paraná is one of the 26 Brazilian estates. Paraná is situated in the southern region of Brazil. If you haven’t read the other posts,please do so. There is information on the other southern estates of Brazil. Just for the sake of curiosity and in case you are feeling slightly lazy to check the other posts right now I’ll repeat this information. The estates that are part of the souther region in Brazil are Paraná, Santa Catarina and Rio Grande do Sul.
Paraná makes boarders with the estate of São Paulo, Santa Catarina and Mato Grosso do Sul. Paraná also makes boarder with Argentina and Paraguay and is limited by the Atlantic Ocean.
The Capital of Paraná is the famous city of Curitiba. Just as informational fact, Curitiba is home for 38 of 100 largest companies (both nationals and multinacionals) in Brazil It is home for companies like ESSO, Bosch, Siemens among others.
What you won’t find at “The Economist Intelligence Unit” 😀
In numeric terms the estate of Paraná occupies an area of 199.880 km2 .Just to give you an idea, the estate is two times the size of Portugal. According to the latest Brazilian census, that is done by the Brazilian institute of geography and estatistics ( IBGE) the estate of Paraná is inhabited by 10.444.526 people, what represents 5,5% of the total Brazilian population. The Brazilian total population, according to the latest census is 190.755.799
I’m including below a list with the most populous estates of Paraná
Right, how about the economics? I bet if you have been reading this post this far, the economics of Paraná it is what you really want right? “Rolig man”, the economics is coming. But I believe giving a general picture of what Paraná is like, not only draws you attention to what is important about Paraná, but also makes you a bit more savvy about this impotant estate of Brazil.
Great, by now, you already know the basics about Paraná. Guess yo are ready to go in a bit more in depth with information on Parana´s economy. Should you keep reading this article this is what you are going to read about:
- The Economy of Paraná in values
- Value added Composition per sector in Paraná
- Main municipalities and GDP per municipality
The Economy of Paraná in Values at a Glance
Paraná has the 5th largest economy of Brazil, being behind São Paulo,Rio de Janeiro, Minas Gerais, Rio Grande do Sul and Paraná.
The estate is responsible for 5,98% of the Brazilian GDP. It records a per capita income on average of 22.700 BRL in 2011. This value is slightly above the Brazilian average which is 21.500 thousand BRL on average.
Below I’m adding a spreadsheet containing the evoluiton of Paraná’s GDP over the past years. The spreadsheet comprises the period from 2002-2013.
The Value Added composition per sector in Paraná
The composition of the value added in Paraná is the following:
- Industry sector is responsible for 27,28% of the GDP
- Livestock sector is responsible for 8,65% of the GDP
- Commerce and Services are responsible for 64,05% of the GDP
The estate of Parana has continously been attractinv investments from abroad, especially in the automotive sector.
*BONUS* – Other very important income generators for the estate of Paraná are:
- The logistics and transportation sector;
- The hydroeletric plants and therefore the energy sector
- The tourism sector ( If you cannot remember Part of the Iguazu falls is in Paraná. Iguazu is among the most awesome natural beauties in the world to be seen)
- The mining sector
- The wood extraction sector
- The machinery and equipment sector
- Harvesting machines
- Non Metallic Minerals
- Oil Refining
- Alcohol Production
Paraná’s main municipalities and GDP per municipality
The economies of the metropolitan region of Curitiba is by far amid the most representative ones for the estate. Due to the dynamism of the industry and services the regions of Curitiba, São José dos Pinhais and Araucária are the most representative municipalities for the GDP of Paraná. In the countryside of the estate Londrina and Maringá have a strong presence in the livestock industry, and services.
DID YOU KNOW THAT CURITIBA IS A TEST MARKET FOR INTERNATIONAL BRANDS IN BRAZIL?
Paraná is the “greenest” estate of Brazil. Moreover, Curitiba is the one city in Brazil that several brands use it as a test market. Curitiba does not have the highest income per capita of the south of Brazil, but is amongst the 5 highest income per capita of Brazil. The structure of the city, combined with the expenditures are attractive factors for several international companies willing to test their products and services in a certain market in Brazil.
The Number of companies and Employees according their sector of actitivities in Paraná
The small and medium sized businesses are the vast maority in Paraná. The spreadsheet you will find below, can be quite useful to to be a kickstarter in your market research to determine your target companies.
If the data above is broken down you will see that
Companies withing the Commerce sector are comprised by:
- Clothes Retailers
- Construction Materials Retailers
- Auto Parts Sales
The 3 segments above, represent roughly 30% of the companies in Paraná
Within the Service Sector
- Companies specialized in the food business represent more than 50%
- Another category with a large number of companies is the logistics sector. Road transportantion of cargo is predominant
- Segmetns og high growth within the service sector are automotive sector, machinery and equipments, IT and terrestrial transport.
The Industrial Sector…
The Industrial sector main and largest segments in Paraná are:
- Clothing Manufacture
- Food and Beverages production
These 4 sectors are responsible for 55% of the industry of Paraná.
The segments of high growth within the industrial sector in Paraná are:
- Machinery and Equipment manufacture
- Clothing manufacture
- Manufacture of metals products
- Printing and Editing industry
Paraná’s Import and Export
Paraná’s international trade has traditionally represented nearly 8% of the total exports of Brazil. According to IPARDES, Paraná’s imports have been growing over the last years. The majority of the exports are comprised by farming products and automobiles.
In 2013 Paraná was responsible for 7,5% of total value exported from Brazil to other countries. In 2013 Brazil exported 242 Billion USD. Paraná occupied the 5th position amid the major Brazilian exporting estates.
Paraná’s main export per destinations in 2013 were:
What were Paraná’s main Exports in 2013
- Meats( Cattle,poultry and pork)
- Transportantion Material
- Sugar and confectionery products
- Chemical Products
- Diverse food preparations
- Pulp and Paper
- Electronic material and electronics
- Textile and Clothing
- Oil and derivates
The total value of the exports from Paraná in 2013 accounted for roughly 18 Billion USD.
What were Paraná’s main Imports in 2013
- Chemical Products
- Transportation material
- Oil and derivatives
- Electric materials and electronics
- Pulp and Paper
- Textile and Clothing
- Meat ( Cattle,Poultry and Pork)
- Diverse food preparations
- Sugars and confectionery products
The value of the total imports from Paraná in 2013 were slightly higher than 20 Billion USD.
When the imports are observed from a Category of use perspective it is interesting to observe that
- Capital Goods
- Intermediary Goods
- Consumer Goods
imports have all increased during the year of 2013.
What else would you like to know about Paraná?
Hope this article was useful to you and to your business.
Let me know in case you would like to know more about Paraná!