Belo Horizonte
Belo Horizonte (, ; ) is the sixth-largest city in Brazil, with a population around 2.7 million and with a metropolitan area of 6 million people. It is the 13th-largest city in South America and the 18th-largest in the Americas. The metropol ...
, Brazil's sixth largest city, and the capital of
Minas Gerais
Minas Gerais () is a state in Southeastern Brazil. It ranks as the second most populous, the third by gross domestic product (GDP), and the fourth largest by area in the country. The state's capital and largest city, Belo Horizonte (literally ...
state, has a vibrant, diversified economy. It receives a large number of visitors and
exerts a pivotal influence in the country's economy. Both multinational and Brazilian companies, such as
Google
Google LLC () is an American multinational technology company focusing on search engine technology, online advertising, cloud computing, computer software, quantum computing, e-commerce, artificial intelligence, and consumer electronics. ...
,
Deloitte
Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of profession ...
,
Thoughtworks,
Localiza
Localiza is a Brazilian car rental company founded in 1973 in Belo Horizonte and is the biggest car rental in Latin America and one of the largest in the world by size of the fleet and market capitalization.
Localiza has a network consisting of ...
,
Oi, and
Fiat
Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiary ...
maintain offices or headquarters in the city. The service sector plays a very important role in the economy of Belo Horizonte, being responsible for 85% of the city's
gross domestic product
Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjec ...
(GDP), with industry making up for most of the remaining 15%. Belo Horizonte has a developed industrial sector, being traditionally a hub of the Brazilian
siderurgical and
metallurgical
Metallurgy is a domain of materials science and engineering that studies the physical and chemical behavior of metallic elements, their inter-metallic compounds, and their mixtures, which are known as alloys.
Metallurgy encompasses both the sc ...
industries, as the state of Minas Gerais has traditionally been rich in
minerals
In geology and mineralogy, a mineral or mineral species is, broadly speaking, a solid chemical compound with a fairly well-defined chemical composition and a specific crystal structure that occurs naturally in pure form.John P. Rafferty, ed. (2 ...
.
Belo Horizonte is the distribution and processing center of a rich
agricultural
Agriculture or farming is the practice of cultivating Plant, plants and livestock. Agriculture was the key development in the rise of Sedentism, sedentary human civilization, whereby farming of Domestication, domesticated species created food ...
and
mining
Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic via ...
region and the nucleus of a burgeoning
industrial complex
The industrial complex is a socioeconomic concept wherein businesses become entwined in social or political systems or institutions, creating or bolstering a profit economy from these systems. Such a complex is said to pursue its own financial ...
. Production is centred on
steel
Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...
, steel products,
automobiles
A car or automobile is a motor vehicle with wheels. Most definitions of ''cars'' say that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people instead of goods.
The year 1886 is regarded as ...
, and
textiles
Textile is an umbrella term that includes various fiber-based materials, including fibers, yarns, filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to woven fabrics. However, weaving is not the ...
.
Gold
Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile met ...
,
manganese
Manganese is a chemical element with the symbol Mn and atomic number 25. It is a hard, brittle, silvery metal, often found in minerals in combination with iron. Manganese is a transition metal with a multifaceted array of industrial alloy use ...
, and
gem stone
A gemstone (also called a fine gem, jewel, precious stone, or semiprecious stone) is a piece of mineral crystal which, in cut and polished form, is used to make jewelry or other adornments. However, certain rocks (such as lapis lazuli, opal, an ...
s mined in the surrounding region are processed in the city.
The main industrial district of the city was set during the 1940s in
Contagem
Contagem () is a city in the center of the state of Minas Gerais, in Brazil. It is only from the capital, Belo Horizonte, and forms part of a metropolitan area with a population of 4.8 million.
Geography
The city belongs to the metropolitan meso ...
, a part of greater Belo Horizonte. Multinational companies like
FIAT
Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiary ...
(which opened its plant in Betim in 1974),
Arcelor
Arcelor S.A. was the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of €30.2 billion and shipments of 45 million metric tons of steel in 2004. The company was created in 2002 ...
, and
Toshiba
, commonly known as Toshiba and stylized as TOSHIBA, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. Its diversified products and services include power, industrial and social infrastructure system ...
have subsidiaries in the region, along with other
textile
Textile is an umbrella term that includes various fiber-based materials, including fibers, yarns, filaments, threads, different fabric types, etc. At first, the word "textiles" only referred to woven fabrics. However, weaving is not the ...
,
cosmetic
Cosmetic may refer to:
*Cosmetics, or make-up, substances to enhance the beauty of the human body, apart from simple cleaning
*Cosmetic, an adjective describing beauty, aesthetics, or appearance, especially concerning the human body
*Cosmetic, a t ...
,
food
Food is any substance consumed by an organism for nutritional support. Food is usually of plant, animal, or fungal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals. The substance is inge ...
,
chemicals
A chemical substance is a form of matter having constant chemical composition and characteristic properties. Some references add that chemical substance cannot be separated into its constituent elements by physical separation methods, i.e., wit ...
,
pharmaceuticals
A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field and rel ...
,
furnishing
]
The decorative arts are arts or crafts whose object is the design and manufacture of objects that are both beautiful and functional. It includes most of the arts making objects for the interiors of buildings, and interior design, but not usual ...
and
refractory
In materials science, a refractory material or refractory is a material that is resistant to decomposition by heat, pressure, or chemical attack, and retains strength and form at high temperatures. Refractories are polycrystalline, polyphase, ...
companies. Between the companies headquartered in the city we can list siderurgicals Açominas (held by
Gerdau
Gerdau is the largest producer of long steel in the Americas, with steel mills in Brazil, Argentina, Canada, Colombia, Dominican Republic, Mexico, Peru, United States, Uruguay and Venezuela. Currently, Gerdau has an installed capacity of 26 mill ...
, one of the largest multinationals originated in Brazil);
Usiminas
Usiminas is one of the largest producers of steel in the Americas, with major steel mills in Brazil with a total capacity of 9.5 million metric tons of steel per year. The company accounts for 28% of total steel output in Brazil.
Usiminas has an ...
; Belgo-Mineira (held by
Arcelor
Arcelor S.A. was the world's largest steel producer in terms of turnover and the second largest in terms of steel output, with a turnover of €30.2 billion and shipments of 45 million metric tons of steel in 2004. The company was created in 2002 ...
);
Acesita
Aperam South America, old Acesita and ArcelorMittal Timóteo, is the biggest Brazilian manufacturer of specialty steels. Headquartered in Belo Horizonte, Minas Gerais, the company is a supplier of stainless, silicon and special carbon steels. Ape ...
(partially held by Arcelor); mobile communication
Vivo; and
Telecom Italia Mobile
Gruppo TIM, legally TIM S.p.A. (formerly Telecom Italia S.p.A.), also known as the TIM Group in English, is an Italian telecommunications company with headquarters in Rome, Milan, and Naples, (with the Telecom Italia Tower) which provides fixe ...
, as well as the
NYSE
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is by far the List of stock exchanges, world's largest s ...
-listed electrical company CEMIG. Leading steel product makers Sumitomo Metals of
Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
and Vallourec of
France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
have also plans to construct an integrated steel works on the outskirts of the city.
There are also a large number of small enterprises in the technological sector with regional to nationwide success, particularly in the fields of
computing
Computing is any goal-oriented activity requiring, benefiting from, or creating computing machinery. It includes the study and experimentation of algorithmic processes, and development of both hardware and software. Computing has scientific, e ...
and biotechonology. Because of both governmental and private funding in the diversification of its economy, the city has become an international reference in
Information Technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...
and
Biotechnology
Biotechnology is the integration of natural sciences and engineering sciences in order to achieve the application of organisms, cells, parts thereof and molecular analogues for products and services. The term ''biotechnology'' was first used b ...
, and is also cited because of the advanced corporate and university research in
Biodiesel
Biodiesel is a form of diesel fuel derived from plants or animals and consisting of long-chain fatty acid esters. It is typically made by chemically reacting lipids such as animal fat (tallow), soybean oil, or some other vegetable oil with ...
fuel. The number of jobs in the Information sector has been growing at annual rates above 50%. The Belo Horizonte Metropolitan Area, composed of 33 cities under the capital's direct influence, is home to 16% of the country's biotechnology companies, with annual sales of over R$550 million.
Projects in these fields are likely to expand because of integration between universities, the oil company
Petrobras
Petróleo Brasileiro S.A., better known by the portmanteau Petrobras (), is a state owned enterprise, state-owned Brazilian multinational corporation in the petroleum industry headquartered in Rio de Janeiro, Brazil. The company's name transla ...
and the
Brazilian Government
The politics of Brazil take place in a framework of a federal presidential representative democratic republic, whereby the President is both head of state and head of government, and of a multi-party system. The political and administrative or ...
. One of the largest events that ever took place in the city, the
Inter-American Development Bank
The Inter-American Development Bank (IDB or IADB) is an international financial institution headquartered in Washington, D.C., United States of America, and serving as the largest source of development financing for Latin America and the Caribb ...
meeting, occurred in 2005 and attracted people from everywhere in the world.
For a long time it was marked by the predominance of its
industrial sector
In macroeconomics, the secondary sector of the economy is an economic sector in the three-sector theory that describes the role of manufacturing. It encompasses industries that produce a finished, usable product or are involved in construction ...
, but from the 1990s there has been a constant expansion of the
service sector
The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model (also known as the economic cycle). The others are the primary sector (raw materials) and the second ...
economy, particularly in
computer science
Computer science is the study of computation, automation, and information. Computer science spans theoretical disciplines (such as algorithms, theory of computation, information theory, and automation) to Applied science, practical discipli ...
,
biotechnology
Biotechnology is the integration of natural sciences and engineering sciences in order to achieve the application of organisms, cells, parts thereof and molecular analogues for products and services. The term ''biotechnology'' was first used b ...
,
business tourism
Business tourism or business travel is a more limited and focused subset of regular tourism. During business tourism (traveling), individuals are still working and being paid, but are doing so away from both their workplace and home.
Some definiti ...
,
fashion
Fashion is a form of self-expression and autonomy at a particular period and place and in a specific context, of clothing, footwear, lifestyle, accessories, makeup, hairstyle, and body posture. The term implies a look defined by the fashion in ...
and the making of
jewelry
Jewellery ( UK) or jewelry (U.S.) consists of decorative items worn for personal adornment, such as brooches, rings, necklaces, earrings, pendants, bracelets, and cufflinks. Jewellery may be attached to the body or the clothes. From a western ...
. The city is considered to be a strategic leader in the
Brazilian economy
The economy of Brazil is historically the largest in Latin America and the Southern Hemisphere in nominal terms. The Brazilian economy is the third largest in the Americas. The economy is a middle income developing mixed economy. In 2022, acc ...
. The move towards
business tourism
Business tourism or business travel is a more limited and focused subset of regular tourism. During business tourism (traveling), individuals are still working and being paid, but are doing so away from both their workplace and home.
Some definiti ...
transformed the capital into a national hub for this segment of the
tourist industry
Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. The World Tourism Organization defines tourism mo ...
.
* In 2008, the city's GDP was
R$42 billion (or about of
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
26,2 billion).
* In 2008, the
Greater Belo Horizonte
Greater Belo Horizonte, Brazil, is the name usually used to describe the Belo Horizonte metropolitan region, which is composed of 34 municipalities. As of 2013, it is the third largest metropolitan area of Brazil with more than Six million inhab ...
's GDP was
R$98,5 billion (or about of
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
61 billion).
* In 2008, the city's
per capita income
Per capita income (PCI) or total income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.
Per capita i ...
was
R$17,313 (or
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
10,820). In 2007, it was R$15,830
(about of US$9,893).
The network in Belo Horizonte accounted for 7.2% of GDP in 2002 and came to 7.6% in 2006. The GDP per capita of the network was R $6,624 in 2002 and changed to R $10,638 in 2006, below the national level. The GDP per capita in the city of Belo Horizonte, who heads the network, it remained higher than the network, but with lower growth in the period, R $9,077 in 2002 and R $13,636 in 2006. In the network of Belo Horizonte, the participation of the municipality in total GDP declined from 19.6% in 2002 to 18.2% in 2006.
[IBGE]
Produto Interno Bruto dos Municipios 2006
/ref>
References
{{Belo Horizonte