The increase of participation of the services sector in the national economy is a consequence of changes effected on the basis of national Accounts – which were released by IBGE in March this year. This process has caused municipalities and capitals with a well-developed services sector to account for the biggest increases in terms of participation in the Brazilian GDP.

The increase of participation of the services sector in the national economy is a consequence of changes effected on the basis of national Accounts – which were  released by IBGE in March this year. This process has caused municipalities and capitals with a well-developed services sector to account for the biggest increases in terms of participation in the Brazilian GDP, in 2005. As an example can be mentioned the city of Barueri (located in the state area known as Great São Paulo), which had the highest percent increase of participation in the national GDP in the period 2002 to 2005, 0,24%, having moved from the 15^th to the 8^th position. On the other hand, the city of Rio de Janeiro had the highest decreases of participation in the Brazilian GDP, both in the period 2004-2005 (-0.3%), and in the series from 2002 to 2005 (-0.6%); however, it still remained in the second position in the overall ranking. In the state of Rio de Janeiro, Campos dos Goytacazes was the highlight, having increased its contribution to GDP by 0.22%, from 2002 to 2005, and having moved from the 21^st to the 18^th position in the overall ranking, due to the  good performance of petroleum extraction.

 

GDP of Municipalities is a result of the partnership between IBGE and state statistical institutions. This edition of the survey shows that the income generated in the country remains highly concentrated – only five municipalities accounted, in 2005, for 25% of the national GDP and still very uneven, since  none of the capitals located in the North and Northeast Regions had GDP per capita above the Brazilian GDP in 2005. In that  same year, the lowest GDP per capita in the South Region was above GDP figures of 75% of municipalities in the Northeast.

 

The capitals São Paulo, Rio de Janeiro, Brasília, Curitiba and Belo Horizonte represented, together, 25% of the Brazilian GDP in 2005. The ranking of five highest GDP of municipalities has remained unchanged since 2003, as shown in the table below.

 

 

In 2005, contributions from only 51 municipalities made up half of the GDP and 30.5% of the national population. On the other hand, 1,370 municipalities accounted for 1% of the GDP and concentrated 3.5% of the Brazilian municipalities. This distribution has changed very little in relation to 2002, when 48 municipalities accounted for half of the income produced in the country and 1,388 totaled 1% of this figure.

 

The five municipalities with the lowest GDP figures, in decreasing order, were: Olho D’Água do Piauí (PI), São Luis do Piauí (PI), Quixabá (PB), São Miguel da Baixa Grande (PI) e Santo Antônio dos Milagres (PI). Together, they represented about 0.0001% of all the income generated in the country.

 

In 2005 the 10% of municipalities with the highest GDP figures generated 24.6 times more income than the 50% of municipalities with the lowest GDP. Since 2002, the Southeast Region has reached the highest inequality indicators in this type of comparison, for example, 38.1, in 2005, evidencing the occurrence of income concentration. On the other hand the North (12.7), Northeast (12.8) and South (13.6) had the lowest dispersion coefficients. In the Central West Region, concentration (20.6) was due to results from Brasília.

 

Another sign of concentration is seen in the analysis of the participation of the five municipalities with the highest GDP in relation to overall GDP and to the GDP of their respective Federative Units. In this comparison, Amapá had the highest spatial concentration of income in the country: the five biggest municipalities accounted for 88.5% of the GDP in the state in 2005; in the second position was Amazonas (87.7%). On the other hand were Minas Gerais and Santa Catarina, with the lowest spatial income concentration: 34.7% and 34.8%, respectively. 

 

Between 2002 and 205, Barueri (SP) had the highest increase and Rio de Janeiro (RJ), the highest level of participation in national GDP

 

Considering the municipalities which, individually, accounted for at least 0.5% of the national GDP in 2005 (23 municipalities which, together, held 39.8% of the wealth in the country), compared to figures in 2002, the biggest gains in terms of percent participation in the national GDP were those of Barueri (SP), Campos dos Goytacazes (RJ), Vitória (ES), Duque de Caxias (RJ), Osasco (SP), Betim (MG) and Manaus (AM).           

 

 

 

Besides the intense industrial activity, other highlights of Barueri, in the metropolitan area of São Paulo, were the subsectors of information services, trade and financial mediation. Campos dos Goytacazes, which concentrates activities of petroleum and natural gas exploration, was benefited by 15% of increase of production of these items in the period. Vitória is the highlight in the subsector of information and communication technology, development of softwares and rendering of services in computer science and also in harbor activities.

 

On the other hand, the municipalities which faced the major losses in terms of percent participation in this type of analysis were Rio de Janeiro (RJ), São Paulo (SP), São José dos Campos (SP), Porto Alegre (RS), Belo Horizonte (MG), Salvador (BA), Recife (PE), Goiânia (GO) and Fortaleza (CE). In most of the cases, the movement followed the trend to decrease of participation of capitals in the national GDP. In São José dos Campos, the fall was strongly influenced by the performance of aerospace industry. 

 

Contribution of São Paulo to Brazil’s GDP increased from 2004 to 2005 

 

Still considering the analysis by the minimum contribution of 0.5% in GDP and the analysis of the period of 2004-2005, there was increase of relative participation in 13 municipalities, the main ones being São Paulo (0.6%), Campos dos Goytacazes (0.2%), Barueri (0.2%), Vitória (0,1%), Brasília (0.1%), Campinas (SP, com 0.1%) e Guarulhos (SP, also with 0.1%).

 

The increase of relative participation of São Paulo occurred due to the concentration of services. There was increase of state participation in the services sector compared to the situation in 2004, with change from 64% to 66.5% and this directly affected the capital.  

 

Most of the decrease of participation between 2004 and 2005 occurred in Rio de Janeiro (-0.3%). This state, differently from São Paulo, faced decrease of participation in the services sector in this period of two years, from 70.5% to 69.3%; this change also affected the capital of the state, which used to take most of the value added of this activity. 

 

Reduction of operations in the Pampulha Airport (BH/MG) causes Confins (MG) to have the highest increase of participation in national GDP between 2004 and 2005

 

By analyzing all the 5,564 Brazilian municipalities, in the period 2004-2005, it can be seen that the highest increases of participation in the Brazilian GDP occurred in Confins (MG), Centro Novo do Maranhão (MA), Catas Altas (MG), Campo do Tenente (PR) and Sátiro Dias (BA).

 

Confins moved from position 2,450 to 888, due to the impact of air transportation with the transference of most flights from Pampulha Airport, in Belo Horizonte, to the International Airport of Confins. The gain of positions of Centro Novo do Maranhão (from the 3,041^st to 1,809^th) was a consequence of the increase of charcoal production and of cattle herd. Catas Altas increased iron ore extraction, and moved from the 4,732^nd to the 3,625^th position.

 

The municipalities of Boa Vista do Incra (from the 3,190th to the 4,403rd position), Coxilha (from 2,693rd to 4,061), Quatro Irmãos (from the 3,676th to 5,060th), Boa Vista do Cadeado (from the 2,536th the to the 4,241st ), all located in Rio Grande do Sul, faced the major losses of position in 2005, in comparison with results of 2004. One of the main reasons accounting for this change was the effect of drought over soybeans and cereal crops.

 

Considering the same analysis for the period 2002-2005, the biggest increases of position in relation to GDP were those of Bom Jesus do Araguaia (MT), Canaã dos Carajás (PA), Baixa Grande do Ribeiro (PI), Centro Novo do Maranhão and Ijaci (MG).

 

Bom Jesus do Araguaia changed from the 4,681^st to the 2,618^th position due to the increase of the production of soybeans and the growth of livestock. The increase of Canaã dos Carajás, from the 2,457^th to the 424^th position, occurred due to copper extraction business. In Baixa Grande do Ribeiro, which changed from the 4,190^th position to the 2,173^rd position, with increase of production of soybeans and rice. 

 

On the other hand, the municipalities of Santana do Mundaú (AL), Coxilha (RS), Boa Vista do Incra (RS), Machadinho (RS) and Quatro Irmãos (RS) faced the major losses of position between 2002 and 2005, due to problems related to agriculture. In Santana do Mudaú, there was decrease of the production cost of oranges in 2003. In municipalities located in Rio Grande do Sul, the decreases resulted, mainly, from difficulties faced with crops of soybeans and cereal, in 2005. 

 

Capitals in the Southeast represented almost 1/5 of the Brazilian GDP 

 

In relation to the participation of capitals in the Brazilian economy, in 2005, São Paulo remained in the first position, whereas Palmas was in the last one. Brazilian capitals accounted for 34.8% of the national income that year, considering that capitals in the North Region accounted for 2.4% of this amount; in the Northeast, for 4.5%; in the Southeast, for 19.8%, in the South, for 3.0%; in the Central West, for 5.0%. 

 

Santa Catarina was the most independent state in relation to the GDP of the capital, whereas Amazonas was the most dependent one. The economy of the state of Rio de Janeiro, despite the economic development in the area known as Norte Fluminense, was also very dependent on that of the capital.

 

 

Cascalho Rico and Araporã, in the Minas Triangle, have the highest GDP per capita in the country 

 

The municipalities with the ten highest GDP per capita in the country in 2005 were Cascalho Rico (MG), Araporã (MG), São Francisco do Conde (BA), Triunfo (RS), Porto Real (RJ), Fronteira (MG), Paulínia (SP), Ouroeste (SP), Alto Taquari (MT) and Santo Antônio do Leste (MT).

 

 

 

In Cascalho Rico (GDP per capita of R$ R$ 289.838), in the area known as Minas Triangle, can be found the third biggest hydroelectric power plant in the state of Minas Gerais. The municipality also has an industrial unit of the dairy subsector, and, besides that, a low population concentration. Araporã (R$ 223,027), located in the same area as the former city and having low population density, houses the major hydroelectric power plant in Minas Gerais. In São Francisco do Conde (R4 211.601) is located the second biggest petroleum refinery in terms of installed capacity in Brazil.

 

In 2005, Mirante (BA) had the lowest GDP per capita in the country, R$ 1,204.07;  approximately 62% of its economy depended on public administration. The 56 municipalities with GDP per capita below R$ 1,609.52, that is, 1% of the smallest municipalities in terms of GDP per capita, were located in Maranhão (16), Piauí (14), Bahia (12), Pará (9), Ceará (4) and Alagoas (1).

 

In 2005, Porto Alegre had higher GDP per capita than Rio de Janeiro

 

Among the capitals, the highest GDP per capita, in 2005, was that of Vitória (R$ 47,855), followed by Brasília (R$ 34,510), São Paulo (R$ 24,083), Porto Alegre (R$ 19,582) and Rio de Janeiro (R$ 19,524). This ranking changed in 2005, with Porto Alegre in the fourth position, better than Rio de Janeiro.

 

All the capitals of the Southeast and South Regions had GDP per capita above that of the country in 2005, whereas in the Northeast none of the capitals had such high figures for GDP per capita. In the North and Central West Regions, the only capitals with GDP per capita above that of Brazil were Manaus, Brasília and Cuiabá.

 

Average GDP per capita of 10% of the municipalities with the highest GDP per capita was 6.7 times higher than that of the 50% of municipalities with the lowest GDP per capita. The South Region had the lowest indicators in this type of comparison in all the series (since 2002). In the Central West Region, the indicator in 2005 was 6.5, the highest throughout the series.

 

Besides having lower concentration of GDP per capita in its municipalities, the South had the highest median of income per capita among all the regions (R$ 8,484); this figure represented approximately 1.5 times the median of national income per capita (R$ 5,664). The minimum municipal GDP per capita of the South Region (R$ 3,467) was higher than capita of 75% of the municipalities in the Northeast Region (R$ 3,256).

 

Crises of soybeans market causes Sorriso (MT) to fall from the 1st to the 10th position  in the agriculture ranking

 

Agriculture is, traditionally, the least concentrated activity in the country; its Gini index was 0.57, in 2005. Among the Federative Units, agriculture was most concentrated in Bahia (0.60) and more dispersed in Rondônia.  

 

The municipalities of Mato Grosso and those in the West of Bahia concentrated the highest figures for value added of agriculture. On the other hand, the areas with the lowest figures for value added were located in Piauí, Paraíba and Rio Grande do Norte. In 2004, 165 municipalities held 25% of the value added of agriculture in Brazil, and, in 2005, this figure increased to 183 municipalities. On the other hand, in that year, Brazilian municipalities held only 1% of the value generated by this activity. 

 

Once the year 2005 was not very favorable to soybean crops, mainly due to the dry period and to the fall of the price of this grain, the municipalities of Mato Grosso which had more diverse agriculture reached significant increases. This way, Campo Verde (MT), a great producer of herbaceous cotton in the country, moved to the first position in the national ranking, replacing Sorriso (MT), whose production is basically formed by soybeans. The latter fell to the 10^th position.

 

The basis of the economy of São Desidério, in the West of Bahia and the second in the ranking, is irrigated agriculture. Its main products in 2005 were herbaceous cotton (the main producer in the country), soybeans, corn and coffee. Sapezal (MT) the third major contribution to the value added of agriculture, was the second major producer of soybeans, the third major producer of herbaceous cotton and the fifth major producer of corn in the country. 

 

The 12 municipalities with the highest figures for value added of agriculture, which accounted for about 5% of the total in 2005, are shown in the table below. 

 

 

From 2002 to 2005, Campos (RJ) had biggest increase of contribution to value added of industry

 

The industrial activity is highly concentrated in the country, with Gini index of 0.91. Among the Federative Units, the highest concentration occurred in Amazonas (0.97); and the lowest one, in Rondônia (0.74).

 

The municipalities of the states of Rio de Janeiro and São Paulo had high figures for value added of industry. The areas with lowest value added of industry were located in Piauí and in Paraíba. In 2004 and in 2005, only ten of municipalities held one-fourth of all the value added of industry. In 2005 with 59 municipalities, it was possible to reach half of this figure, whereas 2,585 other municipalities accounted for only 1%.

 

In 2005, São Paulo remained as the main industrial area in Brazil, with relative participation of 9.8%, although it lost positions in relation to 2002 (10.7%). Rio de Janeiro also remained as the second in the ranking of industry (2.5%), despite the decrease of its relative participation, which has occurred since the beginning of the series. In 2002, the participation of Rio de Janeiro was 3.4%. 

 

In this period of time (2002-2005), Campos dos Goytacazes had the highest percent increase of participation in the value added of industry (0.8%), surpassing Manaus for the first time in the series. On the other hand, the municipalities which had the biggest decreases of participation in value added of industry were São Paulo (-0.9%) and Rio de Janeiro (-0.8%). The data are summarized in the table below.

 

 

Financial mediation leads Barueri and Osasco to reach better positions in the ranking of services

 

The concentration of value added of services was close to that of the national GDP, with Gini index, in 2005, of 0.87. The highest (0.89) and the lowest (0.69) concentration figures were those obtained in the states of São Paulo and Rondônia, respectively. The municipalities of the state of Rio de Janeiro had high value added of services. In Piauí, 56% of the municipalities were in the lower level of distribution. 

 

From 2002 to 2005, there was no change in the composition of municipalities which grouped up to 25% of the value added of services, considering that São Paulo and Rio de Janeiro, together, accounted for 21.4% of the total in 2002; for 20.8% in 2003; for 19.7% in 2004; and for 20.3% in 2005. 

 

In 2005, with 36 municipalities, financial mediation reached half of the value added of services. In the same year, 1,370 municipalities accounted for 1% of this total. The concentration of services in the capitals was extremely high, and totaled 40.8% in 2005. Of the 36 municipalities which grouped 50% of the value added of services, 17 were capitals. Throughout the series, however, their contribution decreased, and changed from 42.1% in 2002, to 40.8% in 2005. 

 

By analyzing the 22 municipalities which represented, individually, at least 0.5% of the value added of services in 2005, it can be seen that the ones which gained most in terms of participation between 2002 and 2005 were Barueri (0.3%), Vitória (0.2%) and Osasco (0.2%). The major decreases were those of Rio de Janeiro (-0.9%) and São Paulo (-0.3%). 

 

Financial mediation services were the main responsible for the participation gains in Barueri and Osasco. Vitória has been important among the segments of advanced services such as technology of information and communication technology, development of softwares and rendering of services in the field of computer science and also of harbor activities.

 

Over one third of the economy of 31.3% of the municipalities depends on public administration 

 

Value added of public administration (a subsector of services) was more concentrated than that of agriculture, but more widespread than that of industry and of services, with Gini index of 0.78. The biggest concentration of this subsector occurred in São Paulo (0.80) and the lowest, in Maranhão (0.54). 

 

Among the 5,564 Brazilian municipalities, 1,740 (31.3%) had more than one third of its economy dependent on public administration, and the weight of value added of public administration in Brazil, in 2005, was 13%. This subsector is very important to the economy of the Northeast and North Regions, and also for that of Minas Gerais. 

 

The table below highlights the six municipalities with participation of public administration in relation to GDP above 70% in 2005. Their economy was extremely dependent on public administration.

 

 

 

The participation of public administration was above 37% in all the municipalities of Roraima. In Uiramutã, this contribution was 81.0%. It important to mention the relevance of public administration in Amapá, above 35% in almost all its municipalities, except in Serra do Navio, where it was only 5%.      

 

The participation of public administration was below the national average in 14 of the 27 capitals; in approximately 55% of the municipalities in states of São Paulo and Santa Catarina, it was below 15%. These were the states in which muncicipaities were most dependent on the government. 

 

 

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¹ The municipal grid of year 2005 was used, with 5,564 municipalities (four of them having been created in 2005)

 

² GDP per capita is the result of the division of GDP of the municipality by its population, according to the IBGE estimate relative to July 1st, 2005. Not all the income generated in the municipal area is taken by the resident population. GDP per capita in Brazil, in 2005, was R$ 11,658. 

 

³ Measure of the level of concentration of a given distribution, whose value ranges from zero (perfect equality) to one (maximum inequality)

 

⁴ The Gini index for national GDP was 0.86.