The price rise of the barrel of oil influenced the major participation changes of the municipalities in...

The price rise of the barrel of oil influenced the major participation changes of the municipalities in the Brazilian GDP in 2011. As an example among the municipalities that produced at least 0.5% of the GDP, Campos de Goytacazes (RJ) registered the highest absolute participation gain. It changed from 0.7% of the Brazilian GDP in 2010 to 0.9% in 2011 (+0.2 percentage points), mainly due to the high prices of oil. As to the major participation losses, the segment of oil refining declined as a consequence of the high price of oil, which directly impacted the costs of this activity. This together with large stocks and low growth rates of the car industry caused Betim (MG) to change from 0.8% to 0.7% of the national GDP between 2010 and 2011. São Paulo recorded the biggest participation reduction in the GDP (-0.3 p.p.). The nominal growth of the gross value added of Agriculture in 2011, 12.5%, mainly reflected the price rises of corn, coffee, sugarcane and soybeans.

The analysis of gains and losses taking into account all the municipalities showed that several highly positive movements were related to the agricultural activity, both in terms of production and trade.

In 2011, six capitals accounted for approximately 25.0% of the revenue generation in Brazil, five of which more concentrated in the activity of services (financial intermediation, trade and public administration).

This and more information is available in the publication Gross Domestic Product of Municipalities 2011, produced in partnership with the State Statistical Organizations, State Government Departments and the Superintendence of the Manaus Free Trade Zone – Suframa. The complete publication can be accessed on page

https://www.ibge.gov.br/english/estatistica/economia/pibmunicipios/2011/default.shtm

The analysis of gains and losses of percentage participation in the GDP in 2011 in relation to 2010 took into account the municipalities that produced at least 0.5% of the national GDP. Campos de Goytacazes (RJ) registered the highest absolute difference (0.2 p.p.), mainly due to the high prices of oil. Ranked in the second position with an increase of 0.1 p.p., Guarulhos (SP) gained participation as a consequence of the manufacturing industry, as well as of maintenance and repair trade and services.

São Paulo recorded the major participation loss (-0.3 p.p.), due to the segments of maintenance and repair trade and services and of financial intermediation, insurance and supplementary social security services and related services. The second biggest loss (-0.1 p.p.) was posted by Betim (MG), whose main activity was the manufacturing industry. In this case, the segments of manufacturing of car pieces - due to the large stocks - and of oil refining - due to the high price of oil - were the main responsible for the participation drop.

The municipalities of São Bernardo do Campo (SP), Duque de Caxias (RJ) and Manaus registered participation losses of 0.1 p.p. each. In São Bernardo do Campo, the negative change was mainly due to the car industry and the other industrial sectors linked with this production chain, as well as to the toiletries and cosmetics industry. In Duque de Caxias, the participation loss was the consequence of the high price of oil, which directly impacted the costs of the refining activity. As an industrial area, the capital of Amazonas dropped due to the manufacturing industry.

Regardless of recording the highest per capita GDP among the capitals, corresponding to four times the national per capita GDP, Vitória ranked in the fourth place in Espírito Santo, after Presidente Kennedy, Anchieta and Itapemirim.

The per capita GDP of each one of the 556 municipalities with the lowest per capita GDP, i.e., 10.0% of the smallest municipalities in relation to the per capita GDP, was lower than R$ 4,519.66. 52.2% of the municipalities in Piauí, 48.8% in Maranhão, 48.3% in Pará, 38.2% in Alagoas and 31.9% in Bahia were among them.

Production of upland cotton takes São Desidério (BA) to the highest participation in the gross value added of agriculture

Ranked in the third place in the participation in the gross value added of agriculture in the GDP in 2010, São Desidério was the biggest producer of upland cotton in Brazil in 2011, accounting for 14% of the overall production and for 45.1% of the production in Bahia. The production of R$ 832.8 million took São Desidério to the first position. São Desidério was followed by Sorriso (MT), the biggest producer of soybeans and second biggest producer of corn in Brazil, with R$ 745.6 million. Rio Verde (GO) ranked in the third position, with R$ 723.4 million and a number of highlights in the food agribusiness, like the soybeans, corn and sorghum crops and poultry, hogs and pigs and cattle farming.

Price of oil barrel makes Campos dos Goytacazes (RJ) surpass Rio de Janeiro in gross value added of Industry

In 2011, São Paulo remained the major industrial complex in Brazil, registering a relative participation of 7.9% in the gross value added of industry in the national GDP. Ranked in the second place in 2010, Rio de Janeiro recorded a participation of 2.4% and fell to the third position. By posting a participation of 2.9%, Campos dos Goytacazes (RJ) rose to the second place, as a result of the activities of oil and natural gas exploitation and of the high price of the oil barrel.

Three capitals concentrate 24.7% of gross value added of Services in GDP

The three municipalities that added up to 25.0% of the gross value added of services in 2011 were São Paulo (13.1%), Rio de Janeiro (5.9%) and Brasília (5.7%). The generation of value added of services in capitals was very high, adding up to 39.5% in 2011. Considering the 41 municipalities that added up to half of the gross value added of Services, 19 of them were capitals.

And considering the municipalities that accounted for at least 0.5% of the gross value added of services in Brazil, Rio de Janeiro, Guarulhos (SP) and Fortaleza registered slight gains of participation (0.1 p.p.). In the first two, the increase was due to the segment of maintenance and repair trade and services; in the capital of Ceará, the increase was due to the segments of transportation, storage and mail and of services provided to companies.

Only in the capital of Roraima, the services of public administration, health and education and of social security weighted less than 50% of GDP

Public administration, health and education and social security recorded a weight above 50% of the GDP in all the municipalities of Roraima, except for Boa Vista, which posted 39.8%. The weight of these services was also evident in all of the municipalities of Amapá, standing above 40.1% in all of them in 2011, except Pedra Branca do Amapari. In this municipality, the industrial activity accounted for 36.7% of the GDP in 2011 and the participation of the public administration was 26.8%.

In the analysis that considered all the municipalities, the biggest gains of position in the national GDP were reported by two municipalities of Maranhão: Belágua (from the 4,991st position to the 3,849th) and Godofredo Viana (from the 4,217th to the 3,089th). The increased production of cassava and gold extraction were responsible, respectively, for the position gains. As to the major losses in participation, Monções (SP) dropped from the 1,448th to the 3,377th position, due to the decline in the activity of maintenance and repair trade and services. Guarruchos (RS) was another municipality which significantly lost participation. The significant reduction of the exported value of electricity caused the fall from the 1,501st to the 2,695th position.

Services stand out in five out of six capitals which highly concentrate GDP

In 2011, the income generated by six municipalities corresponded approximately to 25.0% of all the income generated in Brazil. These municipalities comprised 13.7% of the population. All the six municipalities were capitals (São Paulo, Rio de Janeiro, Brasília, Curitiba, Belo Horizonte and Manaus) traditionally based on services - financial intermediation, trade and public administration, except for Manaus, whose economy balanced the industrial activity with services.

The aggregated income of 55 municipalities reached approximately half of the national GDP and 30.9% of the population. In the same year, 1,323 municipalities that fell into the last range of relative participation accounted for approximately 1.0% of the GDP and concentrated 3.3% of the population. 73.7% of the municipalities of Piauí, 62.3% of the municipalities of Paraíba, 54.0% of the municipalities of Tocantins and 53.3% of the municipalities of Rio Grande do Norte were included in this range.

Apart from capitals, 11 municipalities stood out as they individually generated more than 0.5% of the GDP, adding up to 8.7% of the Brazilian income. Having Industry and Services highly integrated, these municipalities were: Guarulhos (SP), 1.0%; Campinas (SP), 1.0%; Osasco (SP), 0.9%; Campos dos Goytacazes (RJ), 0.9%; São Bernardo do Campo (SP), 0.9%; Barueri (SP), 0.8%; Santos (SP), 0.8%; Betim (MG), 0.7%; Duque de Caxias (RJ) and São José dos Campos (SP), 0.6% each and Jundiaí (SP), 0.5%. Campos dos Goytacazes (RJ), São José dos Campos (SP) and Jundiaí (SP) are located outside metropolitan areas.

North and Northeast Regions show highly concentrated GDP in their states

In the majority of the states of the North and Northeast Regions, the five biggest municipal GDPs concentrated more than 50% of the state GDP. The exceptions were Tocantins and Bahia, which registered 46.1% and 42.6%, respectively. Although not showing a specific pattern, the Southeast reported that the five biggest municipal GDPs of Espírito Santo and Rio de Janeiro concentrated, respectively, 61.2% and 65.0% of the GDP of their states. Such concentration did not reach 50% in the South and Central-West Regions, except for Mato Grosso do Sul (56.8%) and Goiás (50.7%).

The states of Amapá and Amazonas, whose five biggest municipal GDPs generated, respectively, 87.5% and 86.5% of the GDPs of the states, recorded the highest spatial concentration of income in Brazil, followed by Roraima (85.4%). On the opposite side, Minas Gerais (33.7%), Rio Grande do Sul (35.5%), Santa Catarina (38.5%) and Mato Grosso (38.9%) posted the lowest concentrations.

Only two capitals are not the first in GDP participation in their states

The analysis of the participation of capitals in the national economy in 2011 showed that São Paulo (11.5%) ranked in the first position in the contribution to the Brazilian GDP and Palmas (0.1%) ranked in the last. The analysis of the relative position of each capital in relation to its state and to Brazil showed that the only two capitals which did not rank in the first place in their respective states were Florianópolis and Belém. Joinville, the most populated municipality in Santa Catarina and part of its metal-mechanic complex, ranked in the first position all along the time series (1999 to 2011). In 2011, Itajaí was the second biggest municipality in relation to the GDP. In Pará, Parauapebas ranked in the first place due to the high prices of ore.

The movements among the capitals were always smooth when comparing the participation in the national GDP. In relation to 2010, São Luís, Cuiabá, Florianópolis and Porto Velho gained participation over Belém, Natal, Teresina and Aracaju, respectively. In 2011, the relative participation of capitals in the national GDP was the lowest since the beginning of the time series in 1999. The Brazilian capitals as a whole accounted for 33.7% of the national income. The capitals from the North Region were responsible for 2.4% of this total; those from the Northeast, for 4.6%; those from the Southeast, 18.6%; those from the South, 2.8%; and those from the Central-West, 5.3%.

When comparing each capital with the GDP of the respective Federation Unit, Santa Catarina proved to be the most autonomous state, as Florianópolis contributed with 6.8% in 2011. Conversely, Amazonas was the most dependent state, once Manaus contributed with more than 79.0% to its GDP. This was the lowest value registered all along the time series.

Presidente Kennedy (ES) is the highest per capita GDP in Brazil

The municipalities with the highest per capita GDP had low population density in common. The municipalities of Presidente Kennedy (ES) and Quissamã (RJ) produced oil. The municipality of Louveira (SP) concentrated distribution centers of large companies. The main activity of the municipality of São Gonçalo do Rio Abaixo (MG) was mining and quarrying of iron ore. Confins (MG) rose in the ranking with the transfer of most flights from the airport in Belo Horizonte to the international airport located there. A car industry was located in Porto Real (RJ). An important petrochemical complex was located in Triunfo (RS). Anchieta (ES) was known for pelletizing and sintering iron ore. São João da Barra (RJ) was an oil producer. The largest hydroelectric power plant in Minas Gerais was located in Araporã, with an installed capacity of 2,082 megawatt.