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Prices of mineral commodities influenced the share of municipalities in the GDP in 2009

December 14, 2011 09h00 AM | Last Updated: October 25, 2018 01h00 PM

 Among the 25 municipalities with a participation of at least 0.5% in the whole Gross Domestic Product (GDP), 11 municipalities changed their share between 2008 and 2009.

The fall in the prices of oil barrel, in addition to the economic crisis of 2008, affected the municipality of Campos dos Goytacazes (RJ), which lost 0.4 percentage points in its GDP share, decreasing from 1.0% in 2008 to 0.6%.

 The economic crisis also caused the fall of the prices of iron ore, influencing the loss of 0.2 percentage points in GPD share of the municipality of Vitória (ES), which decreased from 0.8% to 0.6%.

 The municipalities of Barueri, Guarulhos, São Bernardo do Campo and Santos in São Paulo as well as Betim (MG) also showed a negative change of 0.1 percentage points each, caused by the contraction in industry and trade and, in the particular case of Barueri, caused by the increase of the share of the municipality of São Paulo. 

The municipalities that increased their share in the GDP between 2008 and 2009 were São Paulo (from 11.8% to 12.0%), Brasília (from 3.9% to 4.1%), Rio de Janeiro (from 5.2% to 5.4%) and Duque de Caxias (from 0.6% to 0.8%), all of them increasing 0.2 percentage points. 

Approximately 25% of the income generation of the whole country was concentrated in 5 municipalities in 2009:

São Paulo (12.0%), Rio de Janeiro (5.4%), Brasília (4.1%), Curitiba (1.4%) and Belo Horizonte (1.4%). These municipalities together represented 12.6% of the country population. Approximately half of the national GDP was concentrated in 51 municipalities, which represented 30.8% of the whole population. On the other hand, the last range of relative share in the GDP contained 1,302 municipalities, which represented 1.0% of the GDP and 3.3% of the whole population.

Excluding the capitals, 12 individual municipalities, mostly in the Southeast, generated more than 0.5% of the GDP, adding up to 9.3% of the income generated in the whole country: Guarulhos (SP), 1.0%; Campinas (SP), 1.0%; Osasco (SP), 1.0%; São Bernardo do Campo (SP), 0.9%; Barueri (SP), 0.8%; Duque de Caxias (RJ), 0.8%; Betim (MG), 0.8%; Santos (SP) and São José dos Campos (SP), both with 0.7%; Campos dos Goytacazes (RJ), 0.6%; and Jundiaí (SP) and Canoas (RS), both with 0.5%.

In terms of per capita GDP, São Francisco do Conde (BA) was the first in the ranking, followed by Porto Real (RJ), Triunfo (RS), Confins (MG) and Louveira (SP). More detailed information is available in the publication Gross Domestic Product of the Municipalities from 2005 to 2009, designed in partnership with the State Statistical Offices, State Departments and the Superintendence of the Free Trade Zone of Manaus – Suframa. The full publication can be accessed on page

https://www.ibge.gov.br/home/estatistica/economia/pibmunicipios/2005_2009/default.shtm

 RJ:

Decrease of share of Campos dos Goytacazes and increase of Duque de Caxias related to petroleum 

Among the 25 municipalities with a share of at least 0.5% in the whole Gross Domestic Product (GDP), 11 municipalities changed their share between 2008 and 2009, 4 raises and 7 reductions. 

The international crisis in 2008 directly impacted the economy of the municipalities of Campos dos Goytacazes (RJ), which fell from a share of 1.0% in 2008 to 0.6% in 2009, and Vitória (ES), which decreased from 0.8% to 0.6%. The economic performance of Campos dos Goytacazes has been highly influenced by the fall of the price of oil barrel, while the decrease of Vitória was due to the low prices of iron ore. 

Other municipalities that decreased between 2008 and 2009 were Guarulhos, São Bernardo do Campo, Barueri and Santos in São Paulo as well as Betim in Minas Gerais, all of them with a reduction of 0.1 percentage points. Guarulhos had small losses in the participation in the manufacturing industry as well as in the trade. The major losses of São Bernardo do Campo were in the industry of toiletries and cosmetics. In the case of Barueri, the negative change was largely due to the increase in the participation of the municipality of São Paulo. As to Santos, the fall was due to the retraction of the industries of food and chemical products. Betim also lost participation due to the retraction of the trade, mainly the steep decline of the wholesaling of steel products. Nevertheless, Betim increased its share in the manufacturing sector. 

Among the municipalities with at least 0.5% of participation in the whole GDP that increased their share, three of them are capitals. São Paulo increased from 11.8% to 12.0%, mainly due to the valuation of the sectors of financial intermediation, insurance, supplementary social security and related services. Rio de Janeiro increased its share from 5.2% to 5.4%, due to the good performance of all the industrial sectors – particularly the sector of food and beverages in the manufacturing industry – as well as the loss in the participation of the municipality of Campos dos Goytacazes (RJ). Brasília increased from 3.9% to 4.1%, especially due to the new hires in the public service, which improved the performance of the sectors of public administration, health and education and social security. In addition to these municipalities, Duque de Caxias (RJ) increased from 0.6% to 0.8%, due to the fall of oil barrel, which caused the significant reduction of the intermediate consumption of the activity of petroleum refinement and coke and, consequently, increased the gross value added. 

Production of sugar and alcohol increases the participation of municipalities of São Paulo 

The following municipalities of São Paulo reached the highest gains in the ranking of GDP share: Monções (from position 4,502 to position 1,818), Brejo Alegre (from 4,334 to 2,373) and Borá (from 5,037 to 3,679), all of them due to the increase in the production of sugar and alcohol. The gain in the participation of the Pernambuco municipality of Terra Nova (from position 4,189 to position 2,951) was due to the increase in the agriculture sector, whereas the gain in the participation of the Santa Catarina municipality of Mirim Doce (from 4,472 to 3,255) was due to the installation of companies specialized in machining asphalt mix with the purpose of paving near cities. 

The higher losses in participation were in the Minas Gerais municipalities of Albertina (from position 3,554 to position 5,162), due to the decrease in the wholesaling of coffee in grain, Catas Altas (from 1,423 to 3,018), due to the fall in the production of iron ore – already falling since 2005 and worsened by the economic crisis, closing down some mines -, and Prudente de Morais (from 2,488 to 3,645), due to the significant fall in the production of lime and plaster as well as the closure of the company which produced pig iron; in the Maranhão municipality of São João do Carú (from 2,995 to 4,122), due to the fall in the production of cassava; and in the Piauí municipality of Monsenhor Gil (from 2,917 to 3,928), due to the fall in the quarrying of gravel. 

10% of municipalities with higher GDP generated 95.4 times more income than those 60% with lower GDP

 In order to measure how concentrated the generation of income in the productive activity is , the survey split the average GDP of the 10.0% municipalities that most contributed to the national GDP and the average of those 60.0%, 50.0%, 30.0% and 10.0% municipalities that least contributed to the national GDP. The indicator showed in 2009 that the average for the 10.0% municipalities with the highest GDP generated 95.4 times more income than the average for those 60.0% municipalities with the lowest GDP.

It is important to mention that this indicator regularly showed slight falls between 2005 and 2009. The fall was of 100.9 in 2005 and decreased in the following years to: 99.7; 99.3; 96.5, reaching 95.4 in 2009. 

In terms of regions, the Southeast recorded the highest indicators along the time series. Even excluding the capital municipalities of São Paulo and Rio de Janeiro, the indicator for the Southeast remained higher than the other regions, showing a concentration in the GDP. On the other hand, the Northeast, North and South regions showed more dispersion. The concentration was also evident in the Central-West region due to Brasília. 

The same indicator for the Federation Units showed the highest concentration in the states of São Paulo (147.5), Amazonas (108.2) and Rio de Janeiro (98.5), while the lowest concentration was observed in Rondônia (19.1), Acre (24.1) and Tocantins (24.3).

By aggregating the municipalities into 8 ranges of population (until 5,000, from 5,001 to 10,000, from 10,001 to 20,000, from 20,001 to 50,000, from 50,001 to 100,000, from 100,001 to 500,000 and more than 500,000 inhabitants), it is noticed that the highest gain in the participation was in the range from 100,001 to 500,000 inhabitants, which increased from 26.1% in 2000 to 27.4% in 2009, whereas the highest loss was in the range of more than 500,000 inhabitants, which generated 45.8% in 2000 and decreased to 42.7% in 2009.

São Francisco do Conde (BA) shows the highest per capita GDP in 2009 

Less than 15% Brazilian municipalities show a per capita GDP higher than the national per capita GDP (R$ 16,918). Half of the Brazilian municipalities show a per capita GDP lower than R$ 8,395 (approximately half of the national average). Three quarters of the Brazilian municipalities show a per capita GDP lower than R$ 13,317. 

The municipalities with the highest per capita GDP in 2009 showed low population density in common. In the first position, São Francisco do Conde (BA), location of the second largest petroleum refinery in Brazil, recorded a per capita GDP of R$ 360,815.83 and a population of only 31,699 inhabitants. Porto Real (RJ) was ranked in the second position, recording R$ 215,506.46 and 16,253 inhabitants, highly influenced by the automobile industry. Triunfo (RS), location of an important petrochemical complex in the metropolitan area of Porto Alegre, was ranked in the third position, with R$ 211,964.79 and 25,374 inhabitants. The transfer of most flights from the Pampulha airport, in Belo Horizonte, to the neighbor municipality of Confins (MG), caused the latter to rank in the fourth position in 2009, with R$ 187,402.18 and 6,072 inhabitants. Louveira (SP), with R$ 174,891.84 of per capita GDP and 33,251 inhabitants, was ranked in the fifth position, due to the concentration of distribution centers of large companies. 

The lowest per capita GDP in 2009 was of R$ 1,929.97 in the Maranhão municipality of São Vicente Ferrer, which recorded a population of 20,463 inhabitants. According to the Municipal Agriculture Survey (PAM) 2009, São Vicente Ferrer lost 77.6% of the quantity of the production and 83.4% of the value of the production of cassava, due to a large period of excessive rainfall.

The 56 municipalities with the lowest per capita GDP – corresponding to 1.0% of the 5,565 Brazilian municipalities – recorded a per capita GDP lower than R$ 2,728.79 and were located in the state of Pará (13) and in the states of Maranhão (14), Piauí (17), Ceará (2), Alagoas (4) and Bahia (6) in the Northeast. 

Among the capitals, the highlights were Vitória with the highest per capita GDP (R$ 61,790.59), followed by Brasília (R$ 50,438.46), São Paulo (R$ 35,271.93), Rio de Janeiro (R$ 28,405.95) and Porto Alegre (R$ 26,312.45). Despite the highest per capita GDP among the capitals, corresponding to 3.7 times the national per capita GDP (R$ 16,917.66), Vitória was ranked in the third position within the state of Espírito Santo, below the municipalities of Anchieta (R$ 108,431.27) and Presidente Kennedy (R$ 71,942.58). 

Rio Verde (GO) shows the highest gross value added of agriculture

In 2009, 188 municipalities added up approximately to 25.0% of the gross value added - value generated less intermediate consumption – of the agriculture in Brazil, whereas 655 municipalities added up only to 1.0%. 

Large producer of soybean, corn and sorghum, in addition to the raise of poultry, cattle, hogs and pigs, the municipality of Rio Verde (GO) recorded the highest gross value added of the agriculture in 2009 (R$ 676.2 million). São Desidério (BA), ranked in the second position with R$ 662.5 million, was the largest producer of herbaceous cotton in Brazil as well as the largest producer of soybean and corn. Sorriso (MT) was ranked in the third position with R$ 647.0 million, due to the intensive production of soybean, corn and herbaceous cotton as well as extensive livestock. 

Eleven municipalities concentrate approximately 25.0% of gross value added of industry

Only 11 municipalities concentrated approximately 25.0% of the gross value added of the industry in 2009. This group of municipalities concentrated 13.7% of the whole population. Only 62 municipalities concentrated half of the gross value added of the industry and 28.8% of the population. In the same year, 2,409 municipalities added up to 1.0% of the gross value added of the industry and 8.8% of the population. 

In the ranking of the participation of municipalities in the value added of the industry, the municipality of São Paulo remained as the major industrial complex in Brazil, recording a relative share of 8.9% and increasing the participation of 8.7% recorded in 2008. The municipality of Rio de Janeiro, which ranked the third position in 2008 with 2.0% of relative share, advanced to the second position with 2.3% in 2009.

Seventeen of the 37 municipalities that add up to 50.0% of gross value added of services are capitals

Only 37 municipalities concentrated half of the gross value added of the services industry and 28.2% of the population in 2009. In the same year, 1,315 municipalities added up to 1.0% of the gross value added of the services industry and 2.9% of the population. The concentration of the services in the capitals was very high, adding up to 40.5% in 2009. Seventeen of the 37 municipalities that added up to 50.0% of the gross value added of the services industry were capitals. The municipalities of São Paulo, which recorded R$ 255.8 billion, and of Rio de Janeiro, which recorded R$ 118.3 billion, remained leaders in the ranking of value added of the services industry.

Public administration is responsible for more than 1/3 of the economy of 35.4% municipalities

1,968 of the 5,565 Brazilian municipalities (35.4%) had more than one third of their economies depending on public administration, health and education and social security. The weight of the gross value added of this activity in the national GDP is increasing since 2005. The participation in the national GDP was of 12.9% in 2005, 13.1% in 2006, 13.3% in 2007 and 13.4% in 2008, reaching 14.1% in 2009. Among the municipalities mostly dependent on the public administration, the highlights were Uiramutã (RR), with 80.0%, and Areia de Baraúnas (PB), with 71.4%.