Economy of Porto Alegre
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 City of Porto Alegre | |
| Currency | Brazilian Real |
|---|---|
| Calendar Year | |
| Statistics | |
GDP per capita | 49,740,90 R$ |
GDP by sector | Service, Industry, Agriculture |
| Unemployment | 9.5% |
All values, unless otherwise stated, are in US dollars. | |
The economy of Porto Alegre is the fastest growing economy in Brazil and is currently the country's 7th largest regional economy.[1] The city of Porto Alegre has a population of approximately 1.4 million people (the countries 12th largest). The history of Porto Alegre, particularly during the industrial revolution established its economy and the basis of the current industrial sector in the city.[2]
Porto Alegre has a gross domestic product (GDP) per capita of $18,770.[3] The main contributors to the economy of Porto Alegre are services, followed by industry and then agriculture. The main features of the service sector include education, health and tourism, as well as computers/technology. In terms of industry features; the economy of Porto Alegre relies on shoe/leather making, petrochemicals and the manufacturing of cars. The importance of the agricultural sector is due to the environment of Porto Alegre being suitable for the production of tobacco and the raising of livestock.[3] The concept of Participatory Budgeting originated in Porto Alegre[4] and the city is a lead exporter for the state of Rio Grande do Sul.[5]
Historically, the industrialisation of Brazil was slow and it was not until the 1930s that the south of Brazil became industrialised. Porto Alegre acts as the centre for the industrial sector of the south of Brazil and particularly for Rio Grande do Sul.[6] The city is located on the bank of the Rio Guaiba, through the history of the city, its location at the junction of five rivers has been important in establishing it as a "chief industrial and commercial centre of Brazil."[2]
Population and location
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The population of Porto Alegre is 1,483,771.[7] As a percentage of the total population of Brazil (210, 147, 125[8]), the people of Porto Alegre make up approximately 0.67% of the population. (As shown in figure 1).
Porto Alegre is the capital city of the southernmost state in Brazil (Rio Grande do Sul). Its location can be seen in figure 2. It is situated next to the freshwater lagoon named the Lagoa dos Patos, this lagoon is the meeting of 5 rivers.[9]
Gross domestic product (GDP)
The GDP per capita of Porto Alegre is R$49,740.90.[7] As shown in the graph below (figure 2), the GDP per capita of Porto Alegre has been steadily increasing since 2010 showing a 65.8% increase. (Calculated from graph).
Currency
The currency used throughout Brazil (hence in Porto Alegre) is the Brazilian real (BRL).[10]
Subunit:
1/100 centavos (i.e. it is 100 centavos per 1 Brazilian real).
Symbol:
The symbol used for denoting a Brazilian real is R$ [10]
Shown in figure 4 is the Brazilian real.
Exports
The balance of trade of Rio Grande do Sul (of which Porto Alegre is the top exporter) between 2010 and 2017 was positive (i.e. the state exported more goods than they imported). In 2017 the states balance was US$7.5 billion.[5] The state accounts for roughly 10% of Brazil's total exports; Porto Alegre contributing to at least 20% of this figure.[11] Porto Alegre's major exports include plastics, oil, grains, fruits, meat, vehicle parts, soybeans, leather, and rice.[7] Because of Porto Alegre's location; the cities port has always been a trading and logistics hub as it is a junction for 5 major rivers.
Employment
The unemployment rate of Porto Alegre (2019) is 9.5%,[12] which is 3.04% lower than the employment rate of Brazil.[13] It can be seen in the graph below that since 2002 the unemployment rate of Porto Alegre has been generally decreasing until 2014 when they began to rise again.[14] It can also be noted that no other capital city between 2014 and 2018 decreased their unemployment rates.[14]
Income
The average salary in Porto Alegre is between R$130,000 and R$145,000 yearly[15] ($22825.04 (USD) to $25458.69 (USD)). Individuals working in the public sector earn on average 6% more than those working in the private sector.[15] The average monthly salary has been notably increasing since 2016, averaging a 3% increase up to 2020.[15] The income in Porto Alegre compared to that of Brazil shows that on average the salary is 5% higher in Porto Alegre than Brazil.[16]
