In 2007, among the 5,564 municipalities of the country, São Paulo (SP), Rio de Janeiro (RJ), Brasília (DF), Belo Horizonte (MG) and Curitiba (PR) had, in this order, the highest municipal Gross Domestic Product (GDP), together accounting for almost a quarter of Brazilian economy. The five lowest GDP were those from Olho D’Água do Piauí (PI), São Luís do Piauí (PI), Areia de Baraúnas (PB), São Miguel da Baixa Grande (PI) and Santo Antônio dos Milagres (PI), which together amounted approximately 0.001% of GDP in the country.

 

The 27 capitals were responsible for 34.4% of Brazilian GDP, with the biggest part of the economies of each federation unit concentrated in five of their municipalities.

 

Regarding economic activities, 202 municipalities concentrated approximately 25% of gross value added (VAB) of Agriculture in the country, ten municipalities concentrated around 25% of VAB of Industry, and just two municipalities concentrated up to 25% of VAB of Services in 2007.

 

The participation of Osasco (SP) and the position of Alto Horizonte (GO) in the country GDP showed the biggest rises between 2006 and 2007. São Francisco do Conde (GO) had the highest per capita GDP, and Jacareacanga (PA), the lowest: R$ 239,506 and R$ 1,566, respectively. Among the capitals, Vitória (ES) and Teresina (PI) are the extremes of this ranking, with GDP per capita of R$ 60,592 and R$ 8,341.

 

The municipalities also showed great dependence on public administration, which was responsible for more than a third of economy in 33.8% of them.

 

The main information on the Gross Domestic Product of Municipalities 2003-2007 are presented next:

 

IBGE, in partnership with State Statistical Organizations, State Secretariats, and the Superintendence of the Manaus Free Trade Zone (SUFRAMA) presents the results of the Gross Domestic Product of Municipalities 2003-2007. The revenue generated by the five municipalities with the highest GDP in 2007 was, approximately, 25% of the country GDP. All of them were capitals (Table 4).

 

The 50 municipalities on top of the same ranking generated half of the Brazilian GDP. The 1,342 municipalities with the weakest economies accounted for up to 1% of the GDP in the country. This distribution was practically the same in 2006. Among the 50 municipalities with the strongest economies, in 2006 and 2007, there was only a new one: Itajaí (SC), which gained participation due to tax exemptions for importing enterprises.

 

In the North Region, the seven municipalities with the highest GDP aggregated approximately 50% of the total in the region. In the Northeast, the 21 municipalities on top of the ranking represented half of the GDP; in the Southeast, 13; and in the South, 27. Brasília aggregated 42.4% of the GDP in the Central West Region, and if we excluded this municipality of the calculation, 16 municipalities would be necessary to aggregate approximately 50% of wealth in the region.

 

Four out of five municipalities with the lowest GDP in the country were from Piauí

The municipality with the lowest GDP in 2007 was Santo Antônio dos Milagres (PI), followed by São Miguel da Baixa Grande (PI), Areia de Baraúnas (PB), São Luís do Piauí (PI) and Olho D’Água do Piauí (PI). The addition of the GDP of those municipalities represented 0.001% of GDP in the country.

 

In the North Region, the 30 municipalities with the lowest GDP were in Tocantins, except Santarém Novo (PA); in the Northeast, in Piauí, Paraíba and Rio Grande do Norte; in the Southeast, in Minas Gerais, except Guataporanga (SP). All states in the South had municipalities among the 30 with the lowest GDP. In the Central West Region, only Mato Grosso do Sul did not have any municipality in this list.

 

The greatest part of economy in each state is concentrated in five of their municipalities

As a rule, in most states of the North and Northeast, the five municipalities with the strongest economies concentrated more than 50% of GDP in their states. The exceptions were Tocantins and Bahia, where this concentration was 46.0% and 46.9%, respectively. The Southeast did not present a specific pattern, with the five main municipalities of Espírito Santo and Rio de Janeiro concentrating more than 65% of GDP in their states. In the South and Central West Regions, this concentration was much poorer, except in Mato Grosso do Sul (54.4%).

 

Amazonas had the deepest concentration: the five municipalities with the highest GDP represented 87.7% of GDP in the state, and Amapá (87.6%) came next. Santa Catarina, Rio Grande do Sul and Minas Gerais had the poorest concentrations: 35.8%, 36.0% and 37.8%, respectively.

 

In 2007, the 27 Brazilian capitals were responsible for 34.4% of national GDP

In 2007, São Paulo, the capital of the state of São Paulo, presented the greatest participation (12.0%) in national GDP, and Palmas (TO), the shortest. Florianópolis (SC) was the only capital that was not first place in its state, because Joinville and Itajaí had the two greatest participations in Santa Catarina.

 

The group of Brazilian capitals represented 34.4% of national economy: those of the North Region were responsible for 2.4%; those of the Northeast, 4.5%; those of the Southeast, 19.4%; those of the South, 2.9%; and those of the Central West, 5.1%. Santa Catarina was the state that presented the smallest dependence on its capital, in the whole series. At the opposite extreme was Manaus, responsible for 81.9% of GDP in Amazonas.

 

Participation of Osasco (SP) and position of Alto Horizonte (GO) in national GDP had the biggest rises.

In the analysis of gains and losses in percentage participation of GDP from 2006 to 2007, considering the municipalities with at least 0.5% of national GDP, the highest increase of relative participation was from Osasco (SP) (+0.2%) due to services, especially those of financial mediation. The major loss was that of Campos dos Goytacazes (RJ) (-0.2%), with the decrease of petroleum prices, in Reais.

 

Another analysis considers major position gains and losses in the ranking of the 5,564 municipalities of the Country in 2006-2007 (Graph 5): major gains occurred in Alto Horizonte (GO), Albertina (MG), Cairu (BA), São José do Povo (MT) and Queiroz (SP). Major losses occurred in Gavião Peixoto (SP), Borá (SP), Jequiá da Praia (AL), Santana da Vargem (MG) and Ponte Alta do Norte (SC).

 

 

São Francisco do Conde (BA) had the highest GDP per capita in the country, and Jacareacanga (PA), the lowest

In 2007, the five municipalities with the highest GDP per capita in the country were São Francisco do Conde (BA), Louveira (SP), Araporã (MG), Triunfo (RS) and Confins (MG).

 

Most of these municipalities had low population density. In São Francisco do Conde (BA) stood the second petroleum refinery in the country. Louveira (SP) had a strong increase in the activities transport, trade, services of maintenance and repair, and industry.

 

The biggest hydroelectric power station of Minas Gerais was located in Araporã. Triunfo (RS), in the Metropolitan Area of Porto Alegre, was the seat of a petrochemical complex. In Confins (MG), the international airport began to receive most flights from the airport of Belo Horizonte. In the state of Rio de Janeiro, the municipalities of Quissamã and Porto Real had extraction of petroleum and natural gas, and an automobile industry, respectively. Alumínio (SP) was the seat of the biggest integrated aluminum industry in the world. The municipality of Alto Horizonte (GO) began the production and processing of copper sulfide. Barueri (SP) had an intense activity of industry and services.

 

In 2007, Jacareacanga (PA) had the lowest GDP per capita among the 5,564 Brazilian municipalities (R$ 1,566.06). Approximately 60% of its economy came from public administration. Besides, 60% of its territory was aimed at environmental preservation areas and indigenous lands.

 

Vitória (ES) had the highest GDP per capita among the capitals

Among the capitals, Vitória (ES), Brasília (DF), São Paulo (SP), Porto Alegre (RS) and Rio de Janeiro (RJ) had the highest GDP per capita. Vitória had the second highest GDP per capita in Espírito Santo, only surpassed by the municipality of Anchieta.

 

202 municipalities concentrated 25% gross value added of agriculture in the country

In 2007, 202 municipalities aggregated around 25% gross value added of agriculture, and 677 municipalities, only 1%. São Desidério (BA) was the leading producer of herbaceous cotton in the country and a great producer of soy and corn. The international context and the weather were beneficial to soy and corn crops.

 

Campo Verde, Sapezal, Sorriso, Primavera do Leste, Campo Novo do Parecis, Diamantino, Nova Mutum and Lucas do Rio Verde, municipalities of Mato Grosso, recorded high values for the crops of soy (in grain), corn and herbaceous seed cotton. In 2007, Campo Verde also benefited from the increased price of the bag of beans. Sorriso and Sapezal led the national grain production. Uberaba, since 2004 the main cereal producer in Minas Gerais, stood out in the production of corn and was the 13^th sugarcane producer in Brazil.

 

Ten municipalities concentrated around 25% gross value added of industry

In 2007, 10 municipalities concentrated approximately 25% gross value added of industry and 13.4% of Brazilian population. In 59 municipalities, around half gross value added of industry and 28.5% of the population were achieved. In the same year, 2,464 municipalities accounted for 1% gross value added of industry and concentrated 9.3% of the population.

 

In 2007, São Paulo (SP) remained the main industrial complex in the country, with the same participation of 2006: 9.3%, despite having lost participation since 2003 (10.6%). Campos dos Goytacazes (RJ) took the second place in 2005 (2.4%) remaining in this position in 2007 (2.6%), with Rio de Janeiro (RJ) following with 2.2%.

 

The participation of the industrial gross value added of Manaus (AM), where the industrial park of the state was located, remained around 2% in the whole series. Betim (MG), industrial complex of the state, was the seat of a car assembly plant and had a dynamics associated to the good performance of the areas of consumer goods around it.

 

Duque de Caxias had the largest increase in gross value added of industry

Among the 35 municipalities with at least 0.5% of industrial gross value added in 2007, the leaders in increase were Duque de Caxias (RJ) (0.4%), influenced by the rising price of petroleum refining and the production of alcohol, and São Bernardo do Campo (SP) (0.2%), due to the good performance of the car sector.

 

Major losses in participation in relation to 2006, among those 35 municipalities, happened in Campos dos Goytacazes (-0.7%), Rio das Ostras (-0.3%) and Cabo Frio (-0.2%), all in the State of Rio de Janeiro, due to the extraction of petroleum and natural gas. In the municipality of Rio de Janeiro (RJ), there was a reduced production of pharmaceutical and food products. In Manaus (AM), losses in participation came from electronic material and computer and communication equipment.

 

São Paulo (SP) and Rio de Janeiro (RJ) concentrated, alone, up to 25% gross value added of services in 2007

Along the series, there was no change in the composition of the municipalities that aggregated up to 25% gross value added of services, the highlights being the municipalities of São Paulo (SP) and Rio de Janeiro (RJ). This group concentrated 9.2% of the Brazilian population in 2007.

 

In 2007, public administration had weight above 39.7% in all municipalities of Roraima and above 38.6% in the municipalities of Amapá, except Serra do Navio, where industry represented 52.9% of GDP, and public administration, 13.1%.

 

The capitals with the greatest economic weight of public administration were Brasília (DF) (48.3%), Boa Vista (RR) (39.7%), Macapá (AP) (39.9%), Rio Branco (AC) (26.7%) and Porto Velho (RO) (22.2%). At the other extreme were Vitória (ES) (4.5%), São Paulo (SP) (5.9%), Curitiba (PR) (7.3%), São Luiz (MA) (8.3%) and Manaus (AM) (8.8%).

In this same year, with 36 municipalities, half of gross value added (GVA) of services was achieved, as well as round 28.3% of the population. In the same year, 1,344 municipalities accounted for around 1% of GVA of services and around 3.0% of the population.

 

The concentration of services in the 27 capitals was quite great, reaching 40.4% in 2007. Of the 36 municipalities that aggregated around 50.0% of GVA of services, 17 were capitals.

 

In relation to 2006, the capitals of São Paulo, Paraná and Minas Gerais had the biggest gains in participation in the GVA of services, and the greatest losses among capitals occurred in Rio de Janeiro (RJ) and Brasília (DF).

 

The gain of São Paulo (SP) was mainly in trade, information and financial services, and public administration. The gain of Curitiba (PR) was mainly in trade and transport. The segments rent and financial services were the major responsible for the gain in Belo Horizonte (MG). The major responsible for reduced participation of GVA of services in Rio de Janeiro (RJ) were: trade, financial services, rent and public administration. Financial services and public administration exerted major impact the reduced participation of Brasília (DF).

 

Among the municipalities with at least 0.5% GVA participation of services in 2007, those that most increased relative participation in the series were Osasco (SP) (0.3%), due to the increased participation in financial services, trade and services of maintenance and repair.

 

Public administration represented more than a third of economy in 33.8% of the municipalities

Among the 5,564 Brazilian municipalities, 1,881 (33.8%) had more than 1/3 of its economy dependent on public administration. The weight of public administration GVA in the Brazilian GDP had been increasing: in 2004 it was 12.6%; in 2005, 12.9%; in 2006, 13.1%; in 2007, 13.3%.

 

The following table shows the two municipalities whose economy was the most dependent on public administration: Uiramutã (RR), with 80.1%, and Poço Dantas (PB), with 70.2%.