According to estimates from the Federation of Industries of the State of Rio Grande do Sul (FIERGS), the 336 municipalities that had a public calamity declared represent 87.2% of the region’s industrial jobs.
The federation explains that the places most affected by historic floods include the state’s main industrial hubs, responsible for “significant segments of the economy”.
Among the locations, FIERGS highlights:
- O Valley of the Bellswhich employs around 160 thousand people and has strength in the production of shoes;
- The Metropolitan region, which employs around 127 thousand people and has strength in the production of vehicles, auto parts, machines, petroleum products and food;
- The Serra Regionwhich employs around 115 thousand people and has strength in the production of vehicles, machines, metal products and furniture.
In addition to these, the federation points out that Vale do Rio Prado, which produces meat, pasta and tobacco, and Vale do Taquari, with meat, footwear and chemical products, were impacted.
The acting president of FIERGS, Arildo Bennech Oliveira, states that the economic losses in Rio Grande do Sul are “inestimable at the moment”.
“A multitude of companies had their facilities completely compromised. In addition to the gigantic capital damage, the logistical problems must significantly affect all economic chains in the state”, he comments.
The executive believes that the situation caused by the floods could lead to the closure of many jobs, if the government does not intervene. This is because, in several places, the damage will require not only the clearing of roads and businesses, but also reconstruction work.
The FIERGS survey also estimates that municipalities experiencing public calamity represent:
- 80.3% of Gross Value Added (GVA);
- 78.2% of industrial GVA;
- 86.4% of industrial establishments;
- 89.1% of exports from the Manufacturing Industry;
- 83.3% of ICMS collection from industrial activities.
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Tags: Rains floods affect industrial jobs state federation estimates Economy
