The economy is based on cattle raising and agriculture, with the main crops being coffee, sugarcane, and corn.

[3] Neighboring municipalities are: Turmalina, Veredinha, Itamarandiba, Diamantina, Senador Modestino Gonçalves and Bocaiúva.

[5] Carbonita is ranked low on the MHDI and was one of the poorest municipalities in the state and in the country in 2000.

The above figures can be compared with those of Poços de Caldas, which had an MHDI of .841, the highest in the state of Minas Gerais.

The lowest was Manari in the state of Pernambuco with an MHDI of .467 out of a total of 5504 municipalities in the country as of 2004[update].