Brazil: Services sector in São Paulo grew by 17% in 2021

RIO DE JANEIRO, BRAZIL – The turnover of the services sector in the city of São Paulo grew by 17.5% last year compared to 2020, according to the economic survey of the services sector published yesterday (15) by the Association of Goods, Services and Tourism Trade of the State of São Paulo (FecomercioSP).

The survey is based on data obtained from the Survey of Services Tax (ISS) of the City of São Paulo.

One of the explanations for the growth is that 2020 was heavily affected by the Covid 19 pandemic and did not show any change, while 2021 marks the beginning of recovery for some sectors.

According to Fecomercio, the economic sectors most affected by the pandemic rely on the more significant movement of people, such as tourism, leisure, and some industries affected by supply bottlenecks in production chains.

DECEMBER

Considering only the month of December, the sector’s activities increased by 9.2% compared to the same month last year, generating R$60.3 billion (US$11.6 billion) in sales.

Of the 13 segments that make up the indicator, only two recorded a decrease in sales in December: agency, brokerage, and intermediation services (-1.2%) and banking, financial, and insurance services (-8.9%). In December, tourism, accommodation, events, and similar services grew 78.7%.

For FecomercioSP, the scenario for this year is still uncertain, not only because of the pandemic but also because of high-interest rates, high inflation, and political instability.

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