Porto Alegre - Economy

Economy

Located at the junction of five rivers, it has become an important alluvial port as well as one of the chief industrial and commercial centers in Brazil. With the advent of the Mercosul accord it should grow and prosper. Products of the rich agricultural and pastoral hinterland, such as soybeans, leather, canned beef, and rice, are exported from Porto Alegre to destinations as far away as Africa and Japan.

According to SENAES (National Office of Solidarity Economy), it is considered a solidarity economy, the ensemble of economic activities with the following characteristics: cooperation, self-management, economic feasibility and solidarity. In 2005, the office identified 14,954 solidary enterprises in Brazil, among which 85 are located in Porto Alegre.

Among the main business located in Porto Alegre are Gerdau, Petroleo Ipiranga, Zaffari and RBS. Since 2000, General Motors (GM) is operating in Gravataí – located in the Metropolitan Region. Also in this Region but in Triunfo, there is a Petrochemical Pole, and in Eldorado do Sul Dell Computers has established a plant. In the health sector, there are three hospitals considered among the best in Latin America: Hospital Moinhos de Vento, which is a private, JCAH-accredited hospital, (Santa Casa de Misericordia Hospital and Clinicas Hospital). The latter are university-affiliated, referral hospitals for the South of Brazil. Commerce is a very important economic activity, with many malls (like Praia de Belas Shopping, Shopping Iguatemi and the smaller though posh Shopping Moinhos). The Metropolitan Region of Porto Alegre, directed to the production of shoes (around Novo Hamburgo) and to petrochemical industries, as well as services.

In the city is located the Electronics Technology Center (CEITEC), focused on the development and production of application specific integrated circuits (ASICs), today announced the opening of Latin America's first IC design center. To create state-of-the-art semiconductor products for high-volume markets that will be consumed in Latin America as well as exported to global markets. CEITEC S.A will accelerate the growth of Latin America's electronics industry by leveraging Brazil's regional influence, leadership and economic strength. The company will add 60 engineers to its ranks who will design RFID, digital media and wireless communication chips for its fabrication facility now ramping up for production. The total investment by the Brazilian government is almost US$ 210 million. The company is implementing a fab-lite strategy with the ability to manufacture analog/digital chips at its facility in Porto Alegre. The in-house design center with more than 100 engineers.

Its rural hinterland yields a variety of agricultural and pastoral products, including meat and hides, wool, rice, beans, cashews, avocados, wheat, grapes, and tobacco. From the forests comes lumber. The city's industries are chiefly concerned with processing these products and include meat-packing, lard refining, leather tanning, shipbuilding, and the manufacturing of textiles, metallurgic goods, electrical and communications equipment, plastics, pharmaceuticals, perfume, beer, and chemicals. There are also steel mills, an oil terminal, and a petrochemical complex. Power comes from coal mined at nearby São Jerônimo and from a hydroelectric plant at Salto. The city has many business and financial institutions and is also an educational centre.

The GDP for the city was R$ 30,116,002,000 (2006). The per capita income for the city was R$ 20,900 (2006).