São Gonçalo do Rio Abaixo: the unassuming town with the highest per capita income in Brazil
Situated in the central region of Minas Gerais, São Gonçalo do Rio Abaixo, a small town with only 12,000 inhabitants, has Brazil’s highest revenue per capita.
Despite the high tax revenue, the town’s financial prosperity doesn’t always align with the lived experience of its residents, many of whom remain unaware of their hometown’s economic status.
The Institute for Applied Economic Research (Ipea) reports that São Gonçalo has the highest Gross Domestic Product (GDP) per capita (R$209,000/US$43,000) in the country.
IT garners the most revenue from taxes on the Circulation of Goods and Services (ICMS) and Services (ISS) per capita (R$15,617).
The town’s prosperity contrasts sharply with places like Esmeraldas, 140km away, with the lowest per capita revenue in the state at R$9,600.
Similarly, Araioses, in Maranhão, has the lowest per capita revenue nationwide, a figure 35 times less than São Gonçalo’s.
The wealth of São Gonçalo primarily comes from royalties of the Brucutu mine, one of the world’s largest iron ore extraction and beneficiation complexes.
Additionally, revenue from ICMS and ISS taxes levied on companies established to service the mine and other attracted industries contribute to the town’s financial prosperity.
Despite this wealth, there are concerns about future income stability, especially considering potential reductions in revenue from a tax reform currently under review.
Further concerns arise from the town’s reliance on finite mining resources.
However, city officials insist they are committed to diversifying the economy, ensuring infrastructure development, and investing in education to ensure a sustainable future.
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Live Market IntelligenceBrazil — Live Market Board
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Brazil — Live Market Board
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 175,135.41 | +0.31% | +21.85% | 174,586.26 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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