Services sector increases 3% and influences growth of 1.5% in São Paulo’s GDP

Between January and April 2023, the services sector had an increase of 3% — which played a fundamental role in the 1.5% growth of the Gross Domestic Product (GDP) of São Paulo. Together with the service sector, agriculture and livestock registered an increase of 0.9%. The data were released by the State Data Analysis System (Saede).

The growth of the service sector recorded in April this year is 2.8% higher than when compared to the same period of the previous year, which caused a total increase of 1.3% in GDP. Economist Renan Gomes assesses that the increase in GDP is due to the recovery of the economy that has been happening since 2022.

“The labor market has been more heated, with more jobs being generated, more income moving the economy. The purchasing power of wages has increased in recent months, as the unemployment rate has been falling. So all of this has been driving the state’s economic growth,” he explains.

The economist reveals that for the coming months, there is a growth trend, even if a little slower. “We have noticed a deceleration in the economy that was already foreseen, although the latest revisions have shown that it will not be such a severe deceleration. So the expectation is that the state’s GDP will continue to grow, albeit at a lower rate than it has grown in the last 12 months, ”he adds.

Over the past 12 months, compared to the immediately preceding 12 months, there has been a remarkable 2.9% increase in GDP. The services, industry and agriculture sectors had a notable performance, with growth of 3.6%, 1.4% and 0.2%, respectively.

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