Economy of Rio de Janeiro

Rio ranks second nationally in industrial production and is a major financial and service center.

The city’s industries produce processed foods, chemicals, petroleum products, pharmaceuticals, metal products, ships, textiles, clothing, and furniture.

The service sector dominates the economy, however, and includes banking and the second most active stock market in Brazil, the Bolsa da Valores do Brasil.

Tourism and entertainment are other key aspects of the city’s economic life and the city is the nation’s top tourist attraction for both Brazilians and foreigners.

Revenue from tourism began declining sharply in the late 1980s and early 1990s, due in part to a global recession and the Persian Gulf War (1991), but also because of political turmoil and rampant crime in the city.

The annual number of foreign travelers visiting Rio dropped from a high of 750,000 in 1988 to 425,000 in 1990.

Local authorities responded by creating a special police unit in 1992 to patrol those areas most frequented by tourists, especially the Copacabana neighborhood—home to many of the city’s hotels, tourist facilities, and attractive beaches.

Rio is well connected to the rest of Brazil by land, sea, and air. It is linked to all key points in the nation by an extensive highway system.

Most freight moves by truck and a wide range of buses provide direct service to all major Brazilian cities.

Two airports serve the city: Santos Dumont Airport, a downtown facility for local shuttle flights between Rio and São Paulo, and Galeão Airport, a major national and international airport located on Governor’s Island in Guanabara Bay.

The volume of cargo moved through Rio’s port ranks second in the nation. Only the port of Santos, which serves as the port for São Paulo, exceeds its volume.