Half of Brazil's output now outside big cities

18/11/2005 - 9h14

Keite Camacho
Reporter Agência Brasil

Brasília – For the first time, output in Brazil's vast interior is equal to output in the country's big cities. The latest survey of national domestic production at the municipal level shows that urban centers and municipalities in the interior are technically tied at 50% in their share of GDP, reports the government statistical bureau (IBGE). In 1999, the interior was responsible for 46% of GDP.

According to the IBGE, the main reasons the interior is gaining a bigger share of GDP is the location of refineries, agribusiness and fiscal incentives that attract businesses.

Brazil's capital cities, especially São Paulo, Rio de Janeiro, Brasilia, Manaus and Belo Horizonte, where historically so much has been concentrated, have been steadily losing GDP share. In 1999 it was 32%, in 2003 it had fallen to 28%.

Translator: Allen Bennett