Rede Catarinense de Noticias – RCN / Economy / Economy of Santa Catarina grows driven by jobs and falling interest rates

Santa Catarina’s economic activity grew 4.3% in January, compared to the same month last year. The result exceeds the national indicator, which was 3.4%. The services sector recorded a 10.2% growth in economic activity, while in industry the increase was 6.3% and in commerce the increase was 2.8% in the first month of the year, compared to January 2023. According to an analysis by the FIESC Observatory, the positive result was driven by the opening of vacancies in the job market and the fall in interest rates.

The good results of industrial activity are due to growth in sectors with greater sensitivity to interest rates. For the president of the Federation of Industries of SC (FIESC), Mario Cezar de Aguiar, the beginning of the process of reducing interest rates favored the good performance of the sectors most related to capital goods and intermediate goods, which showed recovery in relation to the last year. “An example of this is the production of machinery and equipment, which expanded by 28.5%, and electrical equipment, which increased by 19.8% compared to January 2023”, he highlighted.

The wood and furniture and non-metallic minerals segments also contributed to the growth of industrial activity in Santa Catarina, reflecting exports, which were encouraged by the improvement in conditions in the construction sector in the United States.

“Another highlight in the foreign market was the diversification of destinations for pork, one of the main products in Santa Catarina’s export basket, which also brought positive impacts to the industry at the beginning of the year, despite the slowdown in Chinese demand”, highlighted Camila Morais, economist at the FIESC Observatory.

​Other sectors

In the services sector, growth reflected the good performance of activities provided to companies and the selection and leasing of labor, in addition to road freight transport and information technology services.

In Santa Catarina’s commerce, the result was driven by the consumption of durable goods, due to the increase in sales of vehicles, motorcycles, parts and pieces and household appliances. In addition, household demand also increased consumption in hypermarkets and supermarkets and pharmaceutical items, perfumery and cosmetics.