Rio, June 30, 2004 (Agência Brasil) - São Paulo's share of industrial investment in Brazil fell from 49.2% in 1996 to 42% in 2002. This reduction was also reflected in the results for the Southeast region, whose share of industrial investments declined from 69.5% in 1996 to 68.1% in 2002.

According to the Annual Industrial Survey of Enterprises, released today by the Brazilian Institute of Geography and Statistics (IBGE), during the same period Minas Gerais maintained its 10% share, and Espírito Santo increased its share from 1.9% to 5.6%, driven by companies engaged in export activities. Rio de Janeiro, influenced by the petroleum, steel, and automotive sectors, raised its share of industrial investments from 7.7% to 9.9%.

For the head of the IBGE's industry section, Sílvio Sales, the drop in investments in São Paulo reflects the new demographics of enterprises, which are installing units in mining regions, where there is a greater availability of less expensive labor and more stimulating tax incentives. "In addition, there is the expansion of agribusiness, which attracted attention to states in the South and Center-West," he explained.

The study shows that the North received 4.1% of total industrial investments in 2002, compared with 3.9% in 1996. The Northeast's shared decreased from 11% to 8.5%, influenced by declines in Bahia (from 6.7% to 4.1%) and Pernambuco (from 1.3% to 1.0%). The South's participation rose from 13.5% to 16.2%, lifted primarily by the rise in Paraná (from 4.3% to 6.8%), together with an increase in Rio Grande do Sul from 5.5% to 6.0%, while Santa Catarina's share fell from 3.7% in 1996 to 3.3% in 2002. The Center-West region, helped by the performance of agribusiness, increased its share from 2.0% to 3.1% over the period.

Reporter: Cristiane Ribeiro
Translator: David Silberstein