Economy of the state of São Paulo

[4] São Paulo is currently a leader in several sectors of the Brazilian economy, notably in the financial sector, concentrated in the city of São Paulo, which contains more than 30.5% of bank branches and 30% of credit operations in Brazil, in addition to BM&FBovespa, one of the five largest stock exchanges in the world.

Other important sectors that are also in a leadership position in the country are research and development, health and life sciences, real estate market, energy, information and communication technology (ICT), oil and natural gas, green economy, among others.

[5][6] Located in the Southeast Region, the second smallest in the country in territorial extension, the State of São Paulo borders two of the three states of the Region, Minas Gerais and Rio de Janeiro, and with Paraná to the south and Mato Grosso do Sul to the west, in addition to the Atlantic Ocean to the southeast.

According to a survey carried out by the National Transport Confederation (CNT), 19 of the 20 best highways in Brazil are located in the state, thus being the best road network in the country, with 81.6% of its extension classified as excellent or good.

Among its largest consumer markets are Associação Latino-Americana de Integração (Aladi), to which it exported 30.23%; the North American Free Trade Agreement (NAFTA), 22.47%; Mercosur, 15.96%.

[12] With COVID-19, the country's economy slowed down, while the state showed an increase above the national average, which fell 4.1%.

[13] Since about 12000 BCE, the territory of the current State of São Paulo was already inhabited by indigenous peoples.

Thus, in the 16th century, when the process of colonization of the state of São Paulo with the arrival of Portuguese and Spanish navigators to the Brazilian territory, the majority indigenous people in the region were the tupinambás, tupiniquins, tamoios, carijós and others, on the coast; and peoples from the linguistic trunk macro-jê inland.

In 2017, the income generated by the sector in São Paulo corresponded to 10.14% of the national agricultural activity, according to the Brazilian Institute of Geography and Statistics (IBGE) and the State Data Analysis System Foundation (Seade) – (2017)[19] The two main agricultural highlights in the state are sugar cane and orange.

What results from these factors is the growing disincentive for pig farmers to remain in the activity in which production is insufficient and practically all consumed in the state itself.

[citation needed] It can be considered that the economic history of São Paulo begins with the coffee cycle that started in the second half of the 19th century (during the period of the First Republic the state also had a relevant expansion industrial).

The decline of coffee farming causes the transfer of capital to industry, which was able to develop supported by the consumer market and the labor force available in the state.