Diversified Economy

Rio Grande do Sul has one of the five largest economies among Brazilian states, accounting for 6,53% of the country’s GDP (IBGE, 2019). Also, its industrial center ranks among the largest of its kind in Brazil, accounting for 6,8% (CNI, 2019) of the national processing industry, and has an expressive participation in the segment, ranking fifth in Brazil.

The importance of the processing industry to Rio Grande do Sul’ economy is attested by its contribution to the state’s GDP (15,7%), well above the national average of 11.3%. The composition of the state’s economy is shown in the chart below:

The processing industry is highly diversified and originated from activities related to agribusiness and other sectors originating from the primary sector. The main segments are food, metal-mechanic, transport equipment, chemicals, plastic materials and furniture. All these sectors are active in the export market. The detailed composition is shown below:

Rio Grande do Sul’s processing industry has a significant share in the national market in various segments, as follows:

Brazil’s largest industrial park (% of national production):

 Rice – 49.4%¹

Fertilizers or fertilizers with nitrogen, phosphorus and potassium NPK – 20%¹

Tobacco – 88.3%¹

High Density Polyethylene (HDPE) – 45%

Biodiesel – 25.4%¹

Agricultural tractors – 43.4%¹

Wines and grape juices – approximately 90%3

 

Second largest industrial park in Brazil (% national production):

Leather and Footwear - 20.8%

Polypropylene (PP) - 36.1%¹

Harvesting machines – 36.2%¹

Furniture – 18.4%²

Milk – 17%¹Brazil’s third largest industrial park (% national production):

Rubber and plastic products – 8.4%¹

Soybean oil 20%1

Mineral or chemical fertilizers or fertilizers -14.4%1

 

Third largest industrial park in Brazil (% national production):

Cardboard – 12%¹

Frozen pork – 23.7%¹

Chilled/fresh pork – 15.5%¹

Frozen poultry meat and offal – 11.5%¹

Chilled/fresh poultry meat and offal - 14.2%¹

Tubes, pipes and hollow steel profiles – 13.4%¹

 

Fourth largest industrial park in Brazil (% national production):

Fresh cheese – 12.4%¹

Wheat flour – 12.3%¹

Plastic items - 8.7%¹

Parts, pieces and accessories for motor vehicles – 5.5%¹

Automotive vehicles - 9.6%4

 

¹ PIA IBGE (2020)

² MOVERGS (2021)

3IBRAVIN estimate

4 ANFAVEA (2021)