Historic Business Boom In Rio: Highest Openings In Over Two Centuries

(MENAFN- The Rio Times) In July 2024, the state of Rio de Janeiro set a new record for company openings, marking a historic milestone in business creation.

A total of 7,315 new businesses registered during the month. This marks the best performance in the 215-year history of the Rio de Janeiro State Commercial Board (Jucerja) .

This surge in entrepreneurship represents the fourth record-breaking month of the year. It is also the second consecutive month of exceptional growth.

The July 2024 figures show a 5% increase compared to the previous record for the month. That record was set in 2022 with 6,970 new businesses.

There is also a 9.6% rise from the same period last year, which had 6,671 new businesses.

In the first seven months of 2024, Rio de Janeiro registered a total of 44,158 new companies. This is the best result for the January to July period on record.



The breakdown of the 7,315 new businesses in July includes:

• 6,810 new company formations
  
• 386 branch openings
  
• 119 transfer registrations
  

The main activities of these new enterprises are:

Office services (1,554)

Medical offices (1,240)

Clothing and accessories retail (1,142)

Restaurants (1,102)

Leading Municipalities in Business Creation
The municipalities with the highest number of new business registrations in 2024 are:

Rio de Janeiro city (22,522)

Niterói (2,997)

Duque de Caxias (1,651)

São Gonçalo (1,428)

Campos (1,057)

Factors Contributing to Growth
Governor Cláudio Castro attributes this success to the favorable business environment in Rio de Janeiro.

The state government has been simplifying and reducing bureaucracy in business processes.

These efforts aim to facilitate and encourage entrepreneurship. Sergio Romay, president of Jucerja, emphasized that these efforts aim to contribute to Rio de Janeiro's economic and social development.
Comparison with São Paulo
While Rio de Janeiro is experiencing significant growth in business creation, other major Brazilian cities also show strong performance.

The state of São Paulo, Brazil's economic powerhouse, has also seen remarkable growth in new business registrations.

In the first half of 2024, São Paulo registered over 174,000 new companies. This set a record in the historical series that began in 1998.

This represents a 14.7% increase compared to the same period in 2023.
Economic Performance Comparison
Rio de Janeiro's economy grew by 1.8% in the first quarter of 2024 compared to the fourth quarter of 2023. This outpaced Brazil's overall GDP growth of 0.8% for the same period.

São Paulo's GDP is projected to grow by 2.3% in 2024. This is higher than the national forecast of 2.05%.

The surge in business creation in Rio de Janeiro and other major Brazilian cities is occurring against a backdrop of economic recovery and growth:

• Employment growth: In the first quarter of 2024, Rio de Janeiro generated 21,800 new formal jobs. Over 80% of these jobs are in the service sector.
  
• Sector performance: Rio de Janeiro's service sector, which accounts for approximately 85% of the city's economy, grew by 2.0% in the first quarter of 2024.
  

São Paulo's growth is expected to be driven by private investment recovery and domestic consumption.

Despite the positive trends, there are concerns about the fragility of the current improvement in industrial activity.

There is also a slowdown in the expansion of services. These factors could potentially limit GDP results by the end of the year.

In conclusion, Rio de Janeiro's record-breaking business creation in July 2024 is part of a broader trend of economic growth and entrepreneurial activity across major Brazilian cities.

Each region faces unique challenges. However, the overall picture suggests positive momentum in Brazil's business landscape, particularly in the service sector and urban centers.

Historic Business Boom in Rio: Highest Openings in Over Two Centuries

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