The Extrema Case: From a Logistics Hub to a City with One of the Highest Per-Capita GDPs in Brazil

This economic boom has sparked a dramatic transformation in the city. According to census data, Extrema’s population jumped from 28,000 in 2010 to 53,400 in 2022—an impressive 87% increase over that period.

Statistics from the Brazilian Institute of Geography and Statistics (IBGE) show that Extrema’s current Gross Domestic Product (GDP) is estimated at R$ 13.6 billion. The city’s GDP per capita is R$ 311,100, placing it sixth in Minas Gerais and 15th in Brazil, ahead of major cities like São Paulo, Rio de Janeiro, and Belo Horizonte.

The Southern Minas Gerais Economic Studies Group, a research department of Unis-MG, reported that the region’s GDP grew by 12.63% in 2021 compared to 2020, far surpassing the national growth rate of 4.6% for the same year.

The total wealth generated in southern Minas Gerais in 2021 amounted to R$ 111.03 billion, up from R$ 99.7 billion in 2020. Meanwhile, Extrema’s unemployment rate stands at a low 2%, compared to the 6.3% state average, according to IBGE data.

With its evolution into a logistics hub and the resulting population growth, local authorities have invested heavily in infrastructure to support both residents and incoming workers, many of whom commute from nearby towns or have relocated to Extrema for job opportunities.

“It was necessary to improve transportation, public services, healthcare, and education—particularly daycare centers. Many women employed in the logistics complexes needed places to leave their children, and solving this issue was a strategic move to sustain the city’s overall economic development,” notes Adriano Carvalho, former municipal development secretary of Extrema.

SiiLA, a market analysis firm, forecasts that Extrema will add another 453,400 square meters of logistics space in the next 12 months, expanding its warehouse capacity by nearly 40%.

In June, Sanofi, a global healthcare giant, and DHL Supply Chain announced the establishment of a new 8,000-square-meter Distribution Center (DC) in Extrema, creating 150 direct jobs. The center is part of Sanofi’s broader investment plan in Minas Gerais, totaling around R$ 333 million through 2032, with a focus on expanding logistics capabilities.

Looking ahead, Carvalho predicts that the city's logistics sector will grow at a slower pace in the coming years, as most of the prime land has already been occupied.

“We expect to see this growth spill over into neighboring cities like Itapeva and Camanducaia,” he adds.

According to SiiLA’s research, Extrema currently has 16 logistics buildings, with the five largest being:

• BWDiase Business Park: 218.9 thousand m² | Vacancy: 0%
• VBI Log Extrema: 122.5 thousand m² | Vacancy: 0%
• Extrema Business Park Block III: 99.3 thousand m² | Vacancy: 12%
• Cy.log Modal Extrema I: 91.6 thousand m² | Vacancy: 0%
• Log Itapeva: 78.4 thousand m² | Vacancy: 0%