Doing Business: Discover Minas Gerais

The state of Minas Gerais is the 3rd largest economy and the 2nd largest exporter among Brazilian states. There are strong opportunities to increase international trade flows from Minas Gerais, as it is still a relatively closed economy. If you are thinking about doing business in Brazil, get to know Minas Gerais.LocationThe State of Minas Gerais is located in the southeastern region of Brazil, the region with the highest development and market in the country (over 50% of Brazil’s GDP).Minas Gerais borders the states of São Paulo, Rio de Janeiro, Espírito Santo, Bahia, Goiás, Federal District/Brasília, and Mato Grosso do Sul. Its geographical position turns Minas Gerais into a corridor connecting various regions of the country: a catalyst aspect for good business.Natural ResourcesMinas Gerais is a state rich in biodiversity and natural resources, housing three of the six biomes present in Brazilian territory: Cerrado, Atlantic Forest, and Caatinga, in addition to transitional areas. It has great hydric potential composed of 16 river basins, of which only the basins of the São Francisco and Paraná rivers represent 67% of its territory.Research & DevelopmentIn Minas Gerais, there are 10 National Institutes of Science and Technology (INCT), which, along with public research centers (Fiocruz, Funed), technological parks, and private research centers linked to companies, give the state a consistent position in Research and Development.EntrepreneurshipThe local startup community has been recognized and comprises 591 companies (Brazilian Startup Association, 2017) with numerous projects that consolidate the important position of the sector.Creative EconomyThe creative and knowledge economy is consolidated in Minas Gerais in various forms of artistic production, fashion, audiovisual industry, gastronomy, architecture, precious stones, and design – among others. The most sophisticated artisanal production in Brazil is in Minas Gerais. Artisans use their skills to create decorative pieces, jewelry, utensils, toys, furniture, among other works of art – made from various types of materials such as soapstone, wood, straw, fabric, clay, metal, and stone among dozens of others.ServicesResponsible for a significant 64% of Minas Gerais’ Gross Domestic Product – GDP, the services sector in the state has increased its share in wealth and job generation in recent decades. About 71.5% of formal employees in Minas Gerais work in some public or private organization in the tertiary sector of the economy.Belo Horizonte, the CapitalBelo Horizonte is currently experiencing the highest level of international exposure in its history. With approximately 2.5 million inhabitants and the fifth largest GDP among the capitals of the country, the city has gained notoriety and recognition in recent years for hosting major events. With its strategic national position, BH has increasingly attracted the attention of entrepreneurs looking to invest in a sustainable city, soon to celebrate 120 years and offering great quality of life.Doing BusinessMinas Gerais is increasingly becoming an international destination for business, tourism, and events. It is estimated that in 2016, the flow of tourists directly contributed approximately R$ 17.2 billion to the state’s economy, representing an increase of about 8% compared to 2015.Important Sectors• Largest coffee producer;• Largest potato producer;• Second largest cattle producer;• Largest milk producer;• Largest producer and exporter of iron ore;• Largest producer and exporter of ferroniobium (and 1st in the world);• Largest steel producer;• Largest producer and exporter of pig iron;• Largest cement producer;• Second largest automotive center;• Second largest foundry hub in the country.