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GDP of Municipalities: agriculture represents more than half of economic activity in 1,135 municipalities

December 14, 2016 09h33 AM | Last Updated: January 17, 2018 05h09 PM

  

Except for the activity of public administration, agriculture answered for more than half of the economies in 1,135 out of the 5,570 Brazilian municipalities (20.4%) in 2014, 210 of them in Rio Grande do Sul and 144 in Paraná, which pointed out the importance of this economic activity in the Brazilian territory. In the same year, 652 municipalities (11.7%) accounted for half of the value added (VA) of agriculture in Brazil. The highest one was registered in São Desidério (BA): R$1.7 billion. Value added is the contribution of the economic activities to the Gross Domestic Product, obtained from the difference between the gross production value and the intermediate consumption absorbed by these activities. This is shown in the Gross Domestic Product (GDP) of Municipalities 2010-2014 publication, which discloses for the first time the three major economic segments in every municipality.

The publication shows that industry is still very concentrated in Brazil, especially in São Paulo, Rio de Janeiro and Espírito Santo. Fifteen Brazilian municipalities concentrated about 25% of the gross value added of this sector and 17.5% of the Brazilian population. On the other hand, 3,012 municipalities accounted for 1.0% of the VA of industry. São Paulo (SP) remained as the biggest industrial complex in Brazil, accounting for 5.6% of the VA of this activity, though losing share since 2010 (6.4%).

São Paulo also concentrated the highest VA of services – excluding public administration – in 2014 (15.1%), followed by Rio de Janeiro (5.8%) and Brasília (3.1%). In 2010, the shares were of 16.5%, 6.2% and 3.4%, respectively, which also pointed to a decentralization movement of this activity among the municipalities. In 2014, 35 municipalities (0.6%), 18 capitals among them, concentrated half of the VA of services in Brazil, whereas 2,110 municipalities (37.9%) accounted for 1.0% of this sector. In 2014, 2,298 municipalities (41.3%) had more than 1/3 of their economies depending on the activity of public administration, health and education, and social security, most of them in the North and Northeast Regions.

Income generated between 2010 and 2014 slightly spread out. Sixty two municipalities accounted for half of the Brazilian GDP in 2014; in 2010, they were 52. Seven municipalities (São Paulo, Rio de Janeiro, Brasília, Belo Horizonte, Curitiba, Manaus and Porto Alegre) accounted for 25% in 2014 (in 2010, they were six). Among the municipalities with the highest GDP, Porto Alegre surpassed Campos dos Goytacazes (RJ), which ranked in the seventh position in 2013. Still in 2014, the 557 municipalities with the highest GDP generated 97.3 times more income than the lower 3,342 ones.

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Whereas 652 municipalities concentrated half of the Brazilian agriculture, industry gathered 76

If, on the one hand, agriculture was the most widespread economic activity in the country in 2014, industry was more concentrated. That year, 168 municipalities together had 25.0% of the agricultural value added inBrazil and 652 added up to half of the sector's value added. On the other hand, 829 municipalities had 1.0% of the sector's value added. São Desidério (BA) was the main one, accounting for 0.7% of the agricultural value added in Brazil. Next are Rio Verde (GO), Sorriso (MT) and Formosa do Rio Preto (BA), each one with 0.4%.

On the other hand, in relation to the industry, just 15 municipalities concentrated nearly 25% of the sector's value added and with 76 municipalities accounting for half of the activity's value added. In the same year, 3,012 municipalities accounted for 1.0%.

São Paulo (SP) remained as the main industry hub of the country, with a contribution of 5.6% to the national VA in 2014. The second position was taken by Rio de Janeiro (RJ), with 3.4%, followed by Camposdos Goytacazes (RJ), with 3.2%. Manaus (AM), where the main industrial hub of the country is located, generated 1.8% of the national gross value added. Since 2010, these municipalities have been the four major industrial centers, with Campos dos Goytacazes and Rio de Janeiro alternating positions.

Three municipalities account for 25% of the services sector in Brazil

In 2014, São Paulo (SP), Rio de Janeiro (RJ) and Brasília (FD) aggregated 25.0% of the services' VA (except for public administration) in Brazil, accounting for 15.1%, 5.8% and 3.1%, respectively. 35 municipalities reached half of the services' VA, with 18 capitals among them. In the same year, 2,110 municipalities accounted for 1.0% of services' VA. The VA of services in the capitals totaled 39.5% in 2014.

The gross value added of public administration, health and education and social security was more concentrated than that of agriculture, but less concentrated when compared to that of the industry and total services. Of the 5,570 municipalities, 2,298 (41.3%) had more than 1/3 of their economy depending on this activity.

The municipalities with a great dependence on the public administration were localized mainly in the North and Northeast. The municipalities that presented a higher participation of the service activity in relation to the GDP, in 2014, were Uiramutã (RR), with 84.5%; São Bento do Trairi (RN), with 75.0%; and Areia de Baraúnas (PB), with 74.6%. The activity recorded a weight above 50% in almost all the municipalities of Roraima, except for Rorainópolis (49.9%) and the capital, Boa Vista (36.1%).

Considering the capitals, the activity's weight was below the national one in 15 of them. The capitals with the lowest weight were São Paulo (SP), with 6.0%; Vitória (ES), with 7.1%; and Curitiba (PR), with 9.4%.

With a slight decentralization in relation to 2010, 62 municipalities generated half of the national income in 2014

In 2014, the income generated by the seven biggest municipalities in relation to the GDP corresponded nearly to 25.0% of all income generated in the country. These municipalities represented 14.3% of the population. Gathering the income of 62 municipalities, the result was nearly half of the national GDP and 32.8% of the population. On the other hand, 1,379 of the municipalities account for nearly 1.0% of the GDP and concentrate 3.3% of the population. In this siuation were 73.2% of the municipalities of Piauí, 59.6% of the municipalities of Paraíba, 51.8% of the municipalities of Tocantins and 50.9% of the municipalities of Rio Grande do Norte.


Table 4 - Rank of the top municipalities in terms of Gross Domestic Product and Population, by municipalities and respective Federation Units, by position - 2014 - 2010-2014

Municipalities and respective Federation Units,
according to position 2014
Position in relation to the Brazilian Gross Domestic Product Relative Contribution (%)
Gross Domestic Product Population
2014
(2)
2010 2011 2012 2013 2014
(1)
2010 2011 2012 2013 2014
(1)
São Paulo/SP

1st

1st

1st

1st

1st

11.6

11.5

11.2

10.9

10.9

5.9

Rio de Janeiro/RJ

2nd

2nd

2nd

2nd

2nd

5.4

5.2

5.3

5.3

5.2

3.2

Brasília/DF

3rd

3rd

3rd

3rd

3rd

3.7

3.5

3.4

3.3

3.4

1.4

Belo Horizonte/MG

4th

4th

4th

4th

4th

1.5

1.5

1.6

1.5

1.5

1.2

Curitiba/PR

5th

5th

5th

5th

5th

1.5

1.5

1.5

1.5

1.4

0.9

Manaus/AM

6th

6th

7th

6th

6th

1.3

1.3

1.2

1.2

1.2

1.0

Porto Alegre/RS

8th

8th

8th

8th

7th

1.1

1.1

1.1

1.1

1.1

0.7

Source: IBGE, in partnership with the State Statistical Offices, State Secretariats and
Superintendência da Zona Franca de Manaus - SUFRAMA.
(1) Data subject to revision. (2) Estimated population for July 1st, revised series.

 

In relation to 2010, there was a slight decentralization, since that year 52 municipalities accounted for half of the income generated in Brazil. In the same year, 1,424 municipalities accounted for 1% of the GDP.

Not counting capital municipalities, nine generated, individually, more than 0.5% of the GDP in 2014, adding up to 7.3% of the country's income. Except for Campos dos Goytacazes (RJ), which generated 1.0%, all the others were in the state of São Paulo with great integration between industry and services: Osasco andCampinas (with 1.0% each), Guarulhos (0.9%), São Bernardo do Campo and Barueri (0.8% each), Jundiaí and Sorocaba (0.6% each) and São José dos Campos (0.5%).

In relation to the previous year, the locality with the greatest advance was Brasília, 0.12 percentage points (p.p.), a gain related to the activity of services. Rio de Janeiro (RJ) lost 0.14 p.p., because of trading. The decrease of 0.13 p.p. in Curitiba (PR) is due to the fall in most of the services activities.

In 2014, the average of the 557 municipalities with the biggest GDP generated 97.3 more income tan the average of the 3,342 municipalities of lowest income.

Economic concentration of the capitals in relation to the country and Federation Units

Concerning the participation of the capitals in the Brazilian economy in 2014, whereas São Paulo (SP) occupied the first position in terms of contribution to the GDP, Palmas (TO) was the last one. Florianópolis (SC) was the only capital that did not get the first position in the state, where the highlight all over the series, from 2002 to 2014, was Joinville.

The movements among the capitals were all very smooth along the series. In relation to 2013, Fortaleza (CE) surpassed Salvador (BA), and Campo Grande (MS) surpassed Vitória (ES), while Cuiába (MT) surpassed Natal (RN) and Teresina (PI) got ahead of João Pessoa (PB) and Florianópolis (SC).


Table 6 - Gross Domestic Product of Capital Municipalities, in relation to the position of Capitals, Federation Unit and Brazil, by Capital Municipalities and their respective Federation Unit, by position - 2014

Municipalities and respective
Federation Units,
by position
Gross Domestic Product
Value (1 000 R$) Position in relation
To Capitals To Federation Unit To Brazil
São Paulo/SP

628 064 882

1st

1st

1st

Rio de Janeiro/RJ

299 849 795

2nd

1st

2nd

Brasília/DF

197 432 059

3rd

1st

3rd

Belo Horizonte/MG

87 656 760

4th

1st

4th

Curitiba/PR

78 892 229

5th

1st

5th

Manaus/AM

67 572 523

6th

1st

6th

Porto Alegre/RS

63 990 644

7th

1st

7th

Fortaleza/CE

56 728 828

8th

1st

11th

Salvador/BA

56 624 041

9th

1st

12th

Recife/PE

50 688 395

10th

1st

14th

Goiânia/GO

46 094 735

11th

1st

17th

Belém/PA

28 706 165

12th

1st

21th

São Luís/MA

26 326 087

13th

1st

26th

Campo Grande/MS

23 902 135

14th

1st

30th

Vitória/ES

23 370 919

15th

1st

31th

Cuiabá/MT

20 525 597

16th

1st

37th

Natal/RN

19 076 030

17th

1st

39th

Maceió/AL

18 302 279

18th

1st

40th

Teresina/PI

17 762 266

19th

1st

41th

João Pessoa/PB

17 462 539

20th

1st

44th

Florianópolis/SC

17 328 527

21th

45th

Aracaju/SE

14 893 787

22th

1st

56th

Porto Velho/RO

12 609 918

23th

1st

65th

Macapá/AP

8 901 882

24th

1st

94th

Rio Branco/AC

8 192 366

25th

1st

102th

Boa Vista/RR

7 339 681

26th

1st

123th

Palmas/TO

6 544 297

27th

1st

140th

Source: IBGE, in partnership with the State Statistical Offices, State Secretariats and
Superintendência da Zona Franca de Manaus - SUFRAMA.
Note: Data subject to revision.

 

In 2014, the relative contribution of the capitals to the composition of the GDP was 33.0%, the same as in 2013. In 2010, the capital contributed with 34.4%. This downward trend in the economic participation of the capitals in relation to the country's economy took place especially because of the Southeast Region, particularly São Paulo.

The North and Northeast Regions are still dependent on their respective capitals. Santa Catarina was the most autonomous state, since Florianópolis contributed to the state’s economy with 7.1%. Amazonas, however, was the most dependent one, since Manaus contributed with 78.0% to the state's GDP.

Presidente Kennedy (ES) still has the highest national GDP per capita

In 2014, the municipality with the highest GDP per capita was Presidente Kennedy (ES), whose economy is based on oil production, with R$ 815.1 thousand. The lowest figure was in Mansidão (BA), with R$ 3.1 thousand. This municipality was provided for by the transfer of federal resources, as the public administration contributed to it with 57.0% of the total gross value added. The economy is focused on subsistence agriculture, with the production of beans, cassava and corn.

More than 30% of the municipalities of Rio de Janeiro, Santa Catarina, Rio Grande do Sul, Mato Grosso do Sul and Mato Grosso presented a GDP per capita above the national GDP in 2014 (R$ 28.5 thousand), whereas no municipality in Acre, Roraima, Amapá and Alagoas had that kind of performance.

In 2014, 13 Brazilian capitals had a GDP per capita above the national one. Along the whole series, until 2013, Vitória (ES) had the highest GDP per capita among the capitals. In 2014, the capital of Espírito Santo, with R$ 66.4 thousand, was surpassed by Brasília, with R$ 69.2 thousand, which corresponded to 2.4 timesBrazil's GDP per capita. On the other hand, Maceió (AL) was the lowest GDP per capita, among the capitals, in 2014 (R$ 18.2 thousand).

The GDP per capita of the 557 municipalities of lowest GDP per capita (10.0%) was below R$ 6.0 thousand. Among these municipalities there were 49.3% municipalities from Maranhão, 46.9% from Piauí and 32.6% from Bahia. The 10.0% of the municipalities with the highest GDP per capita presented a value 5.1 times bigger than the GDP per capita of the 60.0% of the municipalities with the lowest GDP per capita.