Eight municipalities held 25% of Brazilian GDP in 2018

December 16, 2020 10h00 AM | Last Updated: December 21, 2020 03h57 PM

In 2018, 1/4 of the Brazilian GDP came from only eight municipalities. Accounting for 10.2% of the Brazilian GDP that year, São Paulo (SP) led the ranking and reached R$7.0 trillion. The municipality with the highest per capita GDP was Presidente Kennedy (ES), with R$583,171.85.

The economic density of Brazil was R$824 thousand per square kilometer (R$/km2). Osasco (SP) was the municipality with the highest density, producing R$1.1 billion/km2.

Between 2017 and 2018, the municipalities that mostly gained share in the GDP were Maricá (RJ), Niterói (RJ) and Campos dos Goytacazes (RJ), each one with an increase of 0.2 percentage points (p.p.). The three gains were due to the rise in the petroleum price in 2018.

The economic activity of the city-region of São Paulo, which gathers 92 neighbor municipalities with a strong interaction, produced the equivalent to 1/4 of the Brazilian GDP.

In 49.2% of the Brazilian municipalities, public administration was the major economic activity in 2018. Such predominance occurred in more than 90% of the municipalities of Acre, Roraima, Amapá, Piauí, Paraíba and Federal District and in only 9.6% of the municipalities of the state of São Paulo.

This information come from Gross Domestic Product (GDP) of the Municipalities 2018, produced in partnership with the State Agencies of Statistics, State Government Secretariats and the Manaus Free Zone Superintendence – SUFRAMA. The maps about this study are available on the IBGE´s interactive geographic platform.

Eight municipalities concentrate nearly one fourth of the Brazilian GDP

In 2018, eight municipalities added up to nearly 25% of the Brazilian GDP and 14.7% of the population: São Paulo (SP) with 10.2%; Rio de Janeiro (RJ) with 5.2%; Brasília (DF) with 3.6%; Belo Horizonte (MG) with 1.3%; Curitiba (PR) with 1.2% and, with 1.1% each, Manaus (AM), Porto Alegre (RS) and Osasco (SP). In 2002, only four municipalities added up to nearly 1/4 of the national economy.

Municipalities with the 10 highest per capita GDP - 2018
FUs Municipality Per capita GDP Major economic activity
ES Presidente Kennedy R$ 583,171.85 Petroleum extraction
SP Ilhabela R$ 419,457.22 Petroleum extraction
MS Selvíria R$ 362,080.40 Generation of electricity
MG São Gonçalo do Rio Abaixo R$ 337,288.81 Extraction of iron ore
SP Paulínia R$ 306,163.17 Petroleum refining
RS Triunfo R$ 304,208.49 Petrochemical industry
PA Vitória do Xingu R$ 291,967.12 Generation of electricity
MG Extrema R$ 268,459.18 Trade and manufacturing industry
SP Louveira R$ 229,610.70 Trade and manufacturing industry
BA São Francisco do Conde R$ 225,290.31 Petroleum refining
Source: IBGE, in partnership with State Statistical Organizations, State Government Secretariats and the Superintendence of the Manaus Free Trade Zone - SUFRAMA.

The 71 municipalities with the highest GDPs represented nearly half of the total GDP and slightly more than 1/3 of the Brazilian population in 2018. On the other hand, the 1,346 municipalities with the lowest GDPs accounted for nearly 1.0% of the Brazilian GDP and for 3.1% of the Brazilian population.

The analysis of the distribution of the GDP by urban concentration – population arrangement with more than 100 thousand inhabitants, gathering one or more cities with a high level of integration, due to commuting to work or study – points out that 1/4 of the economic production in Brazil was in only two of these concentrations in 2018: São Paulo/SP (16.8%), where the municipality of Osasco (SP) is located; and Rio de Janeiro/RJ (8.1%).

The 10 biggest Brazilian urban concentrations comprise nearly 42.5% of the GDP, being them: São Paulo/SP, Rio de Janeiro/RJ, Brasília/DF, Belo Horizonte/MG, Porto Alegre/RS, Curitiba/PR, Campinas/SP, Salvador/BA, Recife/PE and Fortaleza/CE.

With R$1.1 billion/km2, Osasco remains leader in economic density

The economic density in Brazil was R$824 thousand per square kilometer (R$/km2) in 2018, whereas this figure was 10.5 times higher in the urban concentrations: R$8.7 million/km2. In the Legal Amazon, a vast region with low occupation, this figure was R$122 thousand/km2.

Of the 10 municipalities leaders in economic density, six were in the major urban concentration of São Paulo/SP. The highest density was that of Osasco (SP): R$1.1 billion/km2.

While in the urban concentration of São Paulo/SP each square kilometer produced
R$164.9 million/km2, the economic density of the urban concentration of Rio de Janeiro/RJ, second in the ranking, was 56.8% of that figure: R$93.6 million/km2.

City-region of São Paulo concentrates 24.0% of the national GDP

Inequality was more evident when comparing the Semiarid, the Legal Amazon and the city-region of São Paulo. The first one represented only 5.2% of the national GDP in 2018, the Legal Amazon, 8.8% and the city-region of São Paulo, 24.0%.

In 2018, 31.8% of the national GDP came from capitals, the lowest share in the time series. São Paulo (SP) led, with 10.2% of share and Rio Branco (AC) was in the last position among the capitals, with a contribution of 0.1% among the capitals.

Presidente Kennedy is the highest per capita GDP in Brazil

In 2018, the 10 municipalities with the highest per capita GDPs added up to 1.5% of the Brazilian GDP and 0.2% of the population. Presidente Kennedy (ES), with R$583,171.85, had the highest per capita GDP, followed by Ilhabela (SP), both due to petroleum extraction. In Selvíria (MS), in the third position, and Vitória do Xingu (PA), in the seventh one, generation of electricity was the highlight. São Gonçalo do Rio Abaixo (MG), where the extraction of iron ore was the major activity, was in the fourth position. In 2018, the Brazilian per capita GDP reached R$33,593.82.

Municipalities with the 10 highest GDPs - 2018
FUs Municipality GDP (R$1,000) Share % in the Brazilian GDP Cumulative share %
SP São Paulo  714 683 362                             10.2                             10.2
RJ Rio de Janeiro   364 052 058                               5.2                             15.4
DF Brasília   254 817 205                               3.6                             19.0
MG Belo Horizonte  91 957 092                               1.3                             20.4
PR Curitiba   87 151 950                               1.2                             21.6
AM Manaus  78 192 321                               1.1                             22.7
RS Porto Alegre  77 134 613                               1.1                             23.8
SP Osasco   76 609 046                               1.1                             24.9
CE Fortaleza  67 024 088                               1.0                             25.9
BA Salvador   63 526 092                               0.9                             26.8
Source: IBGE, in partnership with State Statistical Offices, State Government Secretariats and the Superintendence of the Manaus Free Trade Zone - SUFRAMA. Note: Population estimated by municipality with reference date on July 1, 2018, sent to the Brazilian Court of Audit - TCU.

The municipalities in the fifth and tenth positions, Paulínia (SP) and São Francisco do Conde (BA), respectively, had petroleum refining as their major activity. Triunfo (RS), in the sixth position, had a petrochemical industry. Extrema (MG) and Louveira (SP) were in the eighth and ninth positions due to trade and manufacturing industries.

Among the capitals, Brasília (DF), with R$85,661.39, led the per capita GDP, whereas Belém (PA) ranked in the last position, with R$21,191.47. In other words, the per capita GDP of the federal capital was 2.55 times higher than the Brazilian per capita GDP (R$33,593.82). That of Belém corresponded to only 63% of the national per capita GDP.

Three cities in RJ have the biggest gain of share in the GDP in one year

Between 2017 and 2018, the municipalities that mostly gained share in the GDP in Brazil were Maricá (RJ), Niterói (RJ) and Campos dos Goytacazes (RJ), all of them with increase of 0.2 p.p., followed by Ilhabela (SP), Rio de Janeiro (RJ) and Vitória (ES), which increased 0.1 p.p. each.

In Maricá, Niterói, Campos dos Goytacazes and Ilhabela, the gain was linked to petroleum extraction, which benefited from the increase in the international prices in 2018. In Vitória, the performance was due to the extraction of iron ore. In Rio de Janeiro, the increase in the GDP was due, to a great extent, to the increase in the collection of taxes, net of subsidies, on products.

On the other hand, the biggest drops in share occurred in São Paulo (SP), Osasco (SP), Brasília (DF) and Parauapebas (PA). In São Paulo and Osasco, the loss in the share was mainly due to financial activities, insurance and related services, since the interest rate was reduced in 2018 and this activity has a distinguished weight in both municipalities. In Brasília, the share of taxes, net of subsidies, on products was reduced. The extraction of iron ore was reduced in Parauapebas.

Lagoa do Barro do Piauí (PI) and Mulungu do Morro (BA) were the municipalities that mostly advanced positions considering the value of the GDP between 2017 and 2018 – they increased 2,420 and 2,277 positions, respectively. The performance of these cities was influenced by Manufacturing industries. Arapoema (TO) ranked in the third position, due to the activity of Construction.

Among those that mostly lost positions, the highlights were Curral Novo do Piauí (PI), Nova Campina (SP) and Brejo Alegre (SP), whose Manufacturing industries reduced.

Share of Maricá (RJ) in the Brazilian GDP was the one that mostly increased in 16 years

Between 2002 and 2018, the biggest gain of share in the GDP occurred in Maricá (RJ), with an increase of 0.4 p.p. due to petroleum extraction. Having increased 0.3 p.p., Osasco (SP) ranked next to it, leveraged by services, especially Financial activities, insurance and related services. Having gained 0.3 p.p., Itajaí (SC) ranked in the third position, due to trade and repair of motor vehicles and motorcycles.

The biggest drops in the period were in the municipalities of São Paulo (-2.5 p.p.) and Rio de Janeiro (-1.1 p.p.), which pointed out, once again, to a deconcentration trend in the GDP at municipal level. The reduction in São Paulo was influenced by the relative decrease in financial activities, insurance and related services. In Rio de Janeiro, the loss was due to its decreasing weight in the Brazilian industry.

Other drops occurred in Campos dos Goytacazes (RJ), São Bernardo do Campo (SP) and São José dos Campos (SP), which lost 0.3 p.p. each. In the municipality from Rio de Janeiro, the reduction was due to petroleum extraction, and in municipalities of São Paulo, due to the drop in Manufacturing industries.

Having risen 4,055 positions, Alto Horizonte (GO) registered the biggest gain in the ranking of municipalities between 2002 and 2018, due to the industry of extraction of non-ferrous metallic minerals. On the other hand, Motuca (SP) recorded the biggest drop (2,640 positions), due to the smaller production of oranges along the time series.

Public administration prevails in 49.2% of the Brazilian municipalities

In 2,739 (49.2%) municipalities, Administration, defense, public education and health, and social security was the major economic activity in 2018. In Acre, Roraima, Amapá, Piauí, Paraíba and in the Federal District, that percentage surpassed 90.0%. In São Paulo, only 9.6% of its municipalities had the same characteristic.

Of the 268 municipalities whose major activity was manufacturing industries, 214 (79.9%) were in the Southeast and South. Mato Grosso posted the highest percentage of municipalities in which Agriculture, including support to agriculture and post-harvest, was the major activity (36.9%), followed by Rio Grande do Sul (35.6%) and Paraná (32.1%).

São Desidério (BA) has the highest value added of Agriculture

In 2018, nearly 1/4 of the gross value added of the Brazilian Agriculture came from 141 municipalities, of which 92 (65.2%) were in the South and Central-West, based on the production of soybeans, cotton and rice.

The five municipalities with the highest figures were São Desidério (BA), Formosa do Rio Preto (BA), Sapezal (MT), Rio Verde (GO) and Campo Novo do Parecis (MT), which added up to 2.8% of the gross value added of Agriculture.

Rural areas of SP and Belém stand out in the production of vegetables for domestic consumption

In the analysis according to the rural areas – group of municipalities, in which one of them is the urban pole where inputs are looked for and for where agricultural products are delivered –, the highest gross value added were in the South, being soybeans the major activity, highlighted by the rural areas of the regional capitals of Passo Fundo/RS and Cascavel/PR.

While 13 out of 15 rural areas with the highest gross value added were dedicated to the exports of soybeans and sugarcane, the rural area of São Paulo/SP ranked in the sixth position in gross value added, with the production of legumes and vegetables for domestic consumption. The other area that invested in this type of agricultural production was the metropolis of Belém/PA.

20 municipalities account for 1/4 of the value added of Industry

Twenty municipalities concentrated 1/4 of the gross value added of Industry in 2018, revealing a higher concentration than in Agriculture. São Paulo (4.4%) remained in the first position (8.1% in 2002), followed by Rio de Janeiro (2.8%) and Manaus (2.0%), due to the Free Trade Zone. The were followed by Maricá (RJ) and Niterói (RJ), each one with 1.3%, whose performances were linked to petroleum extraction.

Among the urban concentrations, São Paulo/SP registered the highest share (10.5% of the industrial activity in Brazil), followed by Rio de Janeiro/RJ (6.8%), Belo Horizonte/MG (3.1%), Campinas/SP (2.9%) and Curitiba/PR (2.4%). These five urban concentrations added up to 25.7% of the gross value added of the Brazilian Industry.

The city-region of São Paulo concentrated 20.6% of the gross value added of Industry in Brazil, highlighted by manufacturing industries. Legal Amazon represented 9.5% and the Semiarid, 4.2%.

1/4 of the value added of Services is concentrated in São Paulo (SP), Rio de Janeiro (RJ) and Brasília (DF)

In Services – except Administration, defense, public education and health, and social security –, three municipalities added up to nearly 1/4 of the entire activity in Brazil in 2018: São Paulo (SP), with 14.5%, Rio de Janeiro (RJ), with 5.5%, and Brasília (DF), with 3.4%. The 40 municipalities with the highest share accrued 1/2 of the total, of which 19 were capitals. In the same year, the 2,031 municipalities with the lowest share added up to only 1.0% of these services.

The urban concentration of São Paulo/SP held 22.3% of the gross value added of Services (except Administration, defense, public education and health, and social security).

The city-region of São Paulo concentrated 29.6% of Services in Brazil, also excluding public administration. Legal Amazon accounted for 6.7% and the Semiarid showed a gross value added that accounted for 4.1% of these services.