Santa Catarina recorded a 2.2% increase in economic activity compared to the same period in 2021, especially driven by activities in the service sector. In addition, the result was close to the national average of 2.5%, as indicated by the Fiesc Observatory (Federation of Industry of the State of Santa Catarina).

Notified Traders Must Cease Activity This Thursday (12) – Photo: Leo Munkhoz/North Dakota

According to the Economic Activity Index released last Monday (3), Santa Catarina’s industry is showing signs of picking up in recent months, reversing its year-on-year decline, with a 4th straight monthly rise in July.

“We are in full production, creating jobs and income in the state, and the industrial entrepreneur makes an important contribution to this result, because where there is industry, there is economic development,” says Fiesc President Mario. Cesar de Aguiar.

The observatory notes that this movement reflects the gradual normalization of global supply of industrial resources in addition to the resumption of industry segments such as machinery and equipment, plastics and automotive products.

The service sector continues to drive growth in economic activity in Brazil and Santa Catarina in the short term, stimulating, in particular, services provided to families, which include activities such as accommodation, food, personal care and education.

Check the change accumulated in the year up to July compared to the same period of the previous year:

The difference of the state is that the volume of these services is at the level of 11.8% above the pre-pandemic period, while the national average level is 6% lower.

Family consumption is also fueled by tourism activity, which has grown by 42.1% since the beginning of the year in Santa Catarina, exceeding pre-pandemic levels.

In Brazil, the activities and services that grew the most were air transport (46.6%), confirming the growth in tourism activity in the state.

The activities and services that grew the most were air travel in Brazil – Photo: Freepik/Disclosure/ND

Food industry activity, spurred by increased overseas sales of poultry and pork, and building materials exports to the United States, also saw Santa Catarina expand.

“On a monthly basis, Santa Catarina’s economy grew 0.6%, representing the seventh consecutive growth. Expanded trade saw a 3.1% year-on-year increase while the national average recorded a 0.8% fall. The sector was stimulated by the sale of cars, motorcycles, parts and accessories, the most representative category of the automotive sector in the state,” stressed Fiesc Observatory economist Mariana Guedes.

With the resumption of face-to-face work, sales of office equipment, computers and books, newspapers and magazines recorded the highest growth rates of the year.

Fuels and lubricants sales were another highlight, rising reflecting recent federal fuel tax cuts effective from mid-June.