The municipality of São Leopoldo witnessed a significant economic decline at the end of 2023, as indicated by the most recent edition of the Quarterly Socioeconomic Bulletin. Published by the Commercial, Industrial, Services and Technology Association of São Leopoldo (ACIST-SL), the report points to a 2.1% retraction in the level of economic activity during the fourth quarter, compared to the same period of the previous year.
This index, meticulously compiled by the Competitiveness and International Economy Research Group at the University of Vale do Rio dos Sinos (Unisinos), is based on four fundamental pillars: municipal revenue, including taxes on production and circulation; the generation of formal employment, which observes both the stock of jobs and salary variations; and the Brazil and Rio Grande do Sul Effects, measured by the IBC-BR and IBCR-RS indices, respectively.
According to Marcos Lélis, economist and technical coordinator of the Bulletin, the main cause for this drop was the decrease in municipal revenue and the decline in the number of formal jobs. However, it is important to highlight that, throughout 2023, São Leopoldo still recorded an average growth of 0.6%.
The local job market showed a net reduction of 1,278 jobs in the last quarter of 2023, a notable contrast compared to the same period in 2022, which had already presented a negative balance of 625 jobs. It is estimated that during this period, 53,967 people were employed in the city.
In the export sector, São Leopoldo also faced challenges, with a 6.3% decrease in revenue compared to the fourth quarter of 2022, equivalent to a total of US$126.1 million. Products such as piston engines, pumps and compressors, animal feed, and weapons & ammunition have seen significant reductions in exports. On the other hand, sectors such as leather and rubber goods showed an impressive recovery, with increases of 87.9% and 217%, respectively.
The United States remains the main destination for São Leopoldo exports, despite a 7.8% reduction in the volume purchased in the fourth quarter of 2023. China and Mexico showed opposite trends, with significant increases in imports of São Leopoldo products.
The Bulletin also highlights the predominance of the Services sector in São Leopoldo, which represents 53.0% of the local economy, involving areas such as accommodation, food, real estate and commerce. Industry, contributing 30.1% of the municipal GDP, exceeds the sector’s share in the State, reflecting the importance of large industries, including multinationals, for the city’s economy.
Furthermore, the Bulletin provides comparative data with other cities in the Porto Alegre Metropolitan Region, such as Gravataí, Canoas and Novo Hamburgo, offering a comprehensive view of the region’s socioeconomic panorama.
