[1] The city belongs to the mesoregion of Triângulo Mineiro e Alto Paranaiba and to the microregion of Patos de Minas.
Neighboring municipalities are: Lagoa Formosa and Patos de Minas (N), Tiros and Arapuá (E), Ibiá and Rio Paranaíba (S), and Serra do Salitre (W).
[2] Connections to the north and south are made by federal highway BR-354, which lies 4 km (2 mi) from the city center.
Carmo do Paranaíba is in the top tier of municipalities in the state with regard to economic and social development.
[5] The highest ranking municipality in Minas Gerais in 2000 was Poços de Caldas with 0.841, while the lowest was Setubinha with 0.568.