For the first time, IBGE has published GDP figures for the 5.560 municipalities existing in 2002, when the Brazilian GDP was R$1,3 trillion. The results reveal that nine of the municipalities alone contributed to one fourth of that figure. In relation to GDP per head, the petroleum sector was the main responsible for the ranking of some municipalities among those which most contributed to GDP.

In agriculture, the first seven municipalities in the rank are the orange producers, followed by Petrolina, Pernambuco, whose main income source is the production of mangos, goiabas and grapes, through the method of irrigated fruticulture.

Concerning the Brazilian industry, the participation of the petrochemical sector is, once more, responsible for the presence of suburban municipalities such as Campos, Macaé and Duque de Caxias among the nine biggest contributors to GDP.

The service sector, on the other hand, is, in its majority, situated in the capitals; two of them, in fact, hold more than 20% of the total amount of services in Brazil. The calculation of the municipalities’ GDP was carried out by state organizations , except in the state of Tocantins. It was IBGE’s responsibility to manage methodological affairs, train the technical staff and supervise the activities. The full-version methodology is available on the IBGE web site (

www.ibge.gov.br).

In 2002, half of Brazil’s GDP (Gross Domestic Product) was a result of the contribution of only 1.3% of the Brazilian municipalities (70 out of 5.560), inhabited by one third of the population (33.3%). Nine municipalities alone – six of which situated in the Southeast region – made up one fourth (25%) of all the goods and services produced in the country. These areas were inhabited by only 15.2 % of the Brazilian population.

On the other hand, 25% of the production was a contribution of almost 93% of the municipalities (5.153 cities), inhabited by 43.3 % of the population.. Out of the 50 cities with the lowest GDP figures in 2002, 48 (96%) were located in the North (more specifically in the state of Tocantins) and in the Northeast (Piauí and Paraíba).

The concentration of production and the differences among the regions are shown in the results of the Municipalities’ GDP Project, which has been developed by IBGE (Brazilian Institute of Geography and Statistics) since 2000, in partnership with state statistics organizations, state governmental bodies and Suframa (Superintendência da Zona Franca de Manaus).

The time series shows that the situation in 2002 was very similar to that observed in previous years (1999, 2000 and 2001), but a more recent survey has shown changes in relation to the figures released before.

With reference to the rank of municipalities which contribute 25% to GDP, for instance, the main changes are related to an inversion in the positions of Manaus and Belo Horizonte, the non-inclusion of Porto Alegre and the presence of three municipalities which are not capitals: Duque de Caxias (RJ), Guarulhos (SP) and São José dos Campos (SP) (See table below)

The economic growth of Manaus (the capital of Amazonas) was a consequence of two main factors: the reception of royalties due to the transport of natural gas originated from a well in Urucu and the growth of the industrial park of the city. Advances in the industrial activities (manufacture of machines, electric appliances, automobiles, plastic materials and rubber) account for an increase in Guarulhos’ GDP. The situation is similar in São José dos Campos, a city benefited by a significant increase in the export business. The participation of Duque de Caxias in the national production of wealth has increased since 1999, as a reflect of the improvements in petroleum refinement industry.

The municipalities presenting the lowest GDP figures in the country are, in decreasing order, Parari (PB) (R$ 2.6 milhões), Lavandeira (TO) (R$ 2.6 million ), São Miguel da Baixa Grande (PI) (R$ 2.5 million ), Santo Antônio dos Milagres (PI) (R$ 2.0 million ) and São Félix do Tocantins (TO) (R$ 1.9 millions). Together, they correspond to 0.001% of the national production.

Production less concentrated in the South

In a comparison by region among the cities with the highest and lowest GDP, the concentration of production is mostly observed in the Southeast. In 2002, municipalities with the highest GDP (10%) generated almost thirty times as much wealth as the municipalities with the lowest GDP (50%). In the North of the country, the rate between the highest and lowest values was 14.7 to 1; in the Northeast 11.9 to 1; 14 to 1 in the Central West ; and 9.2 to 1 in the South region. The series from 1999 to 2002 shows stability in this index. When the city of São Paulo is excluded from the calculation, the value decreases in the Southeast region, reaching 23 to 1 in 2002 and confirming the concentration of wealth in the capital of São Paulo.

In most Brazilian states, the group of five municipalities with the highest GDP contribute over 50% to the state GDP. The concentration is more visible in the Northeastern states – among which Bahia is the only exception – and in the North region , except in Pará and Tocantins. The concentration rate is lower in the South and in the Central West. In these regions, the total of the five highest municipal GDP’s is still inferior to 50% of the total state production. In the Southeast, the concentration is more visible in Rio de Janeiro and Espírito Santo, where the five highest municipal GDP’s represent over 60% of the state GDP.

Among the capitals, São Paulo (SP) is the leader in terms of contribution to the national GDP (10.41%), contrasting to Palmas (TO) (0.05%). Regarding the contribution of capitals to state’s GDP, Florianópolis is the only one which is not in a leading position. In Santa Catarina, the highest municipal GDP was obtained in Joinville (R$ 5.3 billion). The states’ GDP and the relative participation of the top five cities are shown in Table 5.

Petroleum causes increase in GDP per head 

The analysis of the economic situation of ten Brazilian municipalities with the highest GDP per head in 2002 shows that the petroleum sector was the main responsible for the increased productivity. GDP per head is the rate between the GDP and the number of inhabitants in each city, using July 1^st of each year as a reference. It must be pointed out, however, that not all the income generated in the municipality is in fact available to the resident population.

The top ten list of municipalities contributing to the national GDP was the following: São Francisco do Conde (BA), Triunfo (RS), Quissamã (RJ), Porto Real (RJ), Carapebus (RJ), Rio das Ostras (RJ), Garruchos (RS), Paulínia (SP), Luis Antônio (SP) and Armação de Búzios (RJ). The first three cities have kept this position since 2000.

In São Francisco do Conde is located the Landulpho Alves Petroleum Refinery Plant, which was expanded in 1999. Triunfo, in the metropolitan area of Porto Alegre houses an important petrochemical plant, besides being a city of low population density. Almost all the municipalities in the state of Rio de Janeiro on the list present a high GDP per head because of a combination of factors: the high cost of royalties of petroleum and natural gas – these cities are located in a major petroleum production area - and low population density. The exception is Porto Real a town whose wealth comes, predominantly, from the automobile industry.

In Paulinia the results are due to the existence of Replan (Paulínia’ Refinement Plant. In Luis Antônio can be found alcohol plants , sugar refinement plants and paper and celullose factories. The performance of Garruchos – a city of low population density. – is explained by a growth in the economy, since 2001, caused by the construction of two electricity conversion units imported from Argentina.

Among the capitals, Vitória (ES) was the number one municipality regarding contribution to GDP per head (R$ 22.269), followed by Brasília, R$ 16.361; Manaus (AM), R$ 13.534; São Paulo (SP), R$ 13.139; Rio de Janeiro (RJ), R$ 10.537; and Porto Alegre (RS), R$ 9.397. Vitória and Brasília have been on top positions since 1999. In 2002, the main change in the rank was the growth of Manaus, surpassing São Paulo for the first time and reaching third place as a consequence of its industrial development.

Still regarding Brazilian capitals, the five lowest GDP figures are registered, in increasing order, in : Teresina (PI), Salvador (BA), Palmas (TO), Fortaleza (CE) and Boa Vista (RR). The lowest figure was calculated in Bacuri, in the state of Maranhão: R$ 581.

Considering the national GDP per head (R$ 7.631), an unbalanced distribution among the regions is observed once more. It is possible to notice that all the capitals in the Southeast and in the South had GDP per head above the average in 2002. In the North , Northeast and Central West regions, only Manaus (AM), Recife (PE), Brasília (DF) and Cuiabá (MT) presented results higher than the national figures.

The same way, the difference between the municipalities presenting the highest and the lowest state’s GDP per head is repeated. It happens especially in the Southeast, where the municipalities with the highest GDP per head (10% of the total) have a wealth production per inhabitant over six times bigger than that of municipalities with the lowest GDP per head (50% of the total).The region is the only one which, within the time series, has had a change of level - in 1999 the rate was 4 to 1.

In terms of metropolitan GDP, Great São Paulo was in first position in 2002, regarding both overall GDP or GDP per head – a status that has been maintained since 1999. In the index by inhabitant, are listed in decreasing order, the metropolitan areas of Porto Alegre, Vitória, Salvador and Curitiba. Salvador is the only metropolitan area in the Northeast having a GDP per head higher than Brazils’s average GDP per head.

52.5% of Brazilian municipalities have had a nominal growth above the national average

Over half of the 5.560 Brazilian municipalities (52.%) presented accumulated nominal growth above the national average between 1999 and 2002. During this period , the country had an accumulated nominal growth of 37.4%.

The municipalities which presented greatest development in 2001-2002 were Pinhal da Serra (RS) (566.8%); Pirambu (SE) (464.7%); Baraúna (RN) (362.4%); Berilo (MG) (304.8%) and Japira (PR) (213.2%). Even so, in 2002, the total of these municipalities’ GDP corresponded to only 0.06% of the national figure. Pinhal da Serra, a municipality founded in 2001, presented enormous growth due to the building of a dam on the Pelotas River, related to the installation of the hydro-electric plant of Machadinho, in Piratuba (SC). In Pirambu, the growth of GDP was due to an increased participation in the royalties of the petroleum sector. The growth of Baraúna is related to the development of livestock activities , especially production of melon. In another city, Berillo, the growth resulted from the construction of Irapé Plant, near the Jequitinhonha River. Japira was particularly benefited by the increase in its production of soybeans.

Concerning the growth registered within 2001 and 2002, and taking into account a contribution of 0.5% to the GDP, there are 23 municipalities holding 35.0% of the GDP. Among those, only Macaé (Rio de Janeiro) (48.2%), Campos dos Goytacazes (Rio de Janeiro) (34.2%), São Francisco do Conde (Bahia) (24.2%), Camaçari (Bahia) (17.3%), Manaus (Amazonas) (16.7%), Duque de Caxias (16.5%) and Recife (Pernambuco) (13.6%) had a growth above the national figure (12.3%), making up 6.1% of the GDP in 2002.

The methodology applied does not allow the effective calculation of GDP evolution, (disregarding the losses caused by inflation) because there are not available data on the performance of several production segments (industry, livestock and services) at a municipal level for most Brazilian cities.

The calculation of the municipalities’ GDP was thoroughly performed by state organizations, except in the state of Tocantins. It was IBGE’s duty to manage methodology affairs, train the technical staff and supervise the activities. A full version of the methodology applied is available on the IBGE web site (www.ibge.gov.br). In short, the methodology consisted of dividing among the municipalities the value of fifteen economic activities included in the Regional Accounts, obtained for each Federative Unit through selected indexes. The calculation included all the municipalities existing in 2001 (5.560). The available data are subjected to revision.

Livestock is the least concentrated activity over the Brazilian territory

The agriculture and livestock sectors, when compared to industry and services have proven to be the least concentrated activity on the Brazilian territory. Nevertheless, there has been some concentration in the four years covered by the survey. In 1999, 203 municipalities were responsible for 25% of the total amount of agriculture and livestock products in Brazil. In 2002, only 165 municipalities represented the same percentage. In the same year, 602 municipalities made up 50% of the national agricultural and livestock production. On the other hand, 924 make up only 1% of the overall agricultural production.

However, agriculture and livestock are still the most effectively distributed activities , once the group of the 14 biggest producers was responsible for 5% of the total production in 2002. Out of this group, the first seven ones and the last three ones are municipalities located in São Paulo, producers of oranges. Only 4 out of those 14 municipalities are not located in São Paulo: Petrolina, in Pernambuco, which is the biggest mango and goiaba producer and the third biggest grape producer in the country; Rio Verde, in Goiás, a grain producer ; São Félix do Xingú, in Pará, with the a big number of cattle and the biggest banana production in the country; and Toledo, in Paraná, holding a special position in the group due to poultry and swine slaughter and to the production of soybeans.

As a result of irrigated fruticulture, the municipalities in Rio Grande do Norte had, from 1999 to 2002, one of the highest rates of accumulated growth in agriculture and livestock, 180%, whereas in Brazil the growth rate during the same period was 71%.

Most industrialized municipalities are concentrated in Rio and São Paulo

The industrial sector is the most concentrated one in Brazil. In 1999, 8 out of the 5.507 existing municipalities made up 25% of the overall industrial production. In 2002, 9 out of the 5.560 municipalities were inhabited by 12.1% of the population and produced 25% of the national amount; 12.4% of the production was concentrated in the state of São Paulo.

In 2002, with 55 municipalities inhabited by 27.9% of the population, only half of the industrial production was obtained. In the same year, 2.859 municipalities made up 1% of this production and concentrated 3.2% of the population.

There have been changes in the position of the most industrialized municipalities that made up one fourth (25%) of the overall industrial production. São Bernardo do Campo (SP), Curitiba (PR) and Belo Horizonte (MG), which had been among the first eight ones ranked, were not even included among the first nine in 2002. That is explained by the increase of the participation of surrounding municipalities: Campos dos Goytacazes, Macaé and Duque de Caxias, which benefited from the improvement of the petrochemical industry, and Camaçari, in Bahia, with the start of the automobile industry, in 2000.

By the beginning of 2002, the biggest rises occurred in municipalities where the petroleum sector plays an important role in the economy, such as Cabo Frio, with a growth of 62.43%, Macaé (54.92%), Rio das Ostras (51.15%) and Campos dos Goytacazes (40.17%). 

De 2001 para 2002, os maiores crescimentos ocorreram em municípios que têm o petróleo com peso relevante na economia, como Cabo Frio, cujo crescimento foi de 62,43%, seguido por Macaé (54,92%), Rio das Ostras (51,15%) e Campos dos Goytacazes (40,17%).

Quase 40% do setor Serviços está concentrado nas capitais

A concentração dos serviços nas capitais é alta, chegando a 39% do valor total de Serviços em 2002. Dos 41 municípios que representavam 50% do total de Serviços no País, 17 deles eram capitais. Como o peso dos serviços, no total do PIB, é de 54%, a distribuição dos municípios das capitais em relação ao PIB é semelhante à sua participação no valor total dos serviços. A única exceção é Manaus, um município essencialmente industrial.

Apenas duas capitais - Rio de Janeiro e São Paulo - concentraram, em 2002, cerca de 20% do total dos Serviços. Com o Distrito Federal, chega-se a 25,7% dos Serviços no País.

Capitals hold almost 40% of the services sector

The concentration of services in the Brazilian capitals is high, up to 39% of the total amount of services in 2002. There were 17 capitals out of the 41 municipalities which made up 50% of the amount of services in the country. Once the contribution of the services sector to the GDP is 54%, the distribution of capitals in relation to GDP is similar to its contribution to the total amount of services. The only exception in this case is Manaus, an industrialized city.

Only two capitals - Rio de Janeiro and São Paulo – concentrated, in 2002, about 20% of the total amount of services. Taking the figures for the Federal District into the calculation, the result is 25.7% of the services in the country.

GDP distribution by region

In the North region, most of the municipalities’ income is generated by the services sector, although Bahia and Maranhão play an important role in the agriculture and livestock sectors as well: the former due to the production of soybeans and cotton, the latter due to the the production of rice and soybeans, besides cattle raising. The municipalities located on the coast of Northeastern states also have the petroleum extraction industry as a source of income.

In the Central West region, agriculture and livestock are important due to the soybeans production and cattle raising in Mato Grosso and Mato Grosso do Sul. Nonetheless, some municipalities in Goiás such as Minaçu and Niquelândia, have in mineral extraction a profitable activity. The services sector is also very relevant to the region’s economy, especially in the Federal District.

In the South region the most relevant products are rice, corn, soybeans, fruit and yerba mate herb. Livestock in the South is strongly represented by Rio Grande do Sul – cattle raising – and Santa Catarina - swine and poultry. Vale do Itajaí and the area called Chapecó-Seara-Concórdia, in SC, as well as the area Porto Alegre - Caxias do Sul, in Rio Grande do Sul have an industrial profile.

In the North region, the state of Paraná is the one having more diversity in terms of income sources: cattle raising in São Félix do Xingu; producton of aluminum in Barcarena; a hydro-electric plant in Tucuruí and mineral extraction in the complex of Carajás ,in the city of Parauapebas. In Rondônia, the main activity is livestock, in the municipalities along the Cuiabá-Porto Velho road. In Acre, Amapá, Roraima, Tocantins and Amazonas there is a predominance of the services segment, due, mainly, to the presence of Public Administration Units. The state of Amazonas is a little more diverse, with the factories in Zona Franca, Manaus and petroleum production in Coari.

In the Southeast there are predominantly agricultural regions. Some of them are located in the Northwestern part of São Paulo, characterized by orange production. There are still industrial areas in the Southeastern part of the state, especially near the area São Paulo- Campinas- Rio Claro. Another important industrial region is Vale do Paraíba, in the states of São Paulo and Rio de Janeiro, which greatly contributes to the region’s economic growth. In Minas there is an important industrial area in Belo Horizonte and in Santa Rita do Sapucaí, whose main activities are in the field of electronics. In other municipalities, Pouso Alegre, Poços de Caldas and Varginha, the main activities are in the services sector. In the western part of Minas, there is strong activity in the livestock field and in food industry, featuring important wholesailers. In the state of Espírito Santo, the steel and food industries are located Vitória, the paper and cellulose industries in Aracruz and the mineral industry in Anchieta.